Actually used foreign direct investment (FDI) in China showed double-digit growth in the first 11 months of this year, highlighting the country's sustained appeal for overseas capital despite global turbulence. Actually used FDI totaled USD178.08 billion in the first 11 months of 2022, an increase of 12.2% year-on-year, Shu Jueting, Spokesperson of the Ministry of Commerce (MOFCOM) told a regular press conference. The use of foreign capital in high-tech industries increased by 31.1% year-on-year, with the high-tech manufacturing industry seeing an increase of 58.8%, and the high-tech service industry 23.5%. “This data is still in line with expectations, indicating that China's actual use of foreign capital is still in a state of rapid growth," Economist Tian Yun told the Global Times, adding that the use of foreign capital in the high-tech manufacturing industry still maintained a rapid growth rate, which shows the investment structure is improving.
A breakdown of the FDI numbers revealed that South Korea's actual investment in China soared by 122.1%. The amount of FDI from Germany rose by 52.6%, while that from the UK went up 33.1% and the figure from Japan was 26.6% higher. Measured by domestic regions, eastern China recorded a 7.7% increase in the actual use of FDI, with 28.6% for central China and 24.6% for western China.
The FDI to China from Germany, South Korea, and Japan all increased by more than 20%, which proves that global capital is not leaving the country and that there is no "decoupling" from China, Tian added. Chinese experts said the reason why South Korea and Germany have the fastest growth rate of investment in China is related to China's industrial upgrading. For instance, South Korea is expanding investment in the field of electronics, especially in the field of chips, and Germany is expanding production capacity in electrical, mechanical and auto parts, which has benefited from the rise of China's industrial production capacity. Businesses from the two countries enjoy longstanding cooperation, and bilateral economic and trade ties have long been deeply integrated. Severing those ties and “decoupling” are simply impossible, said Chinese Premier Li Keqiang when German Chancellor Olaf Scholz made a trip to Beijing earlier in November. Samsung's chip plant in Xian expects its 2022 output value to top CNY100 billion.
The Central Economic Work Conference (CEWC) held in December also called for greater efforts to attract foreign capital and widen market access. China will also guide foreign investment into key areas such as advanced manufacturing, modern services, energy conservation and environmental protection, and technological innovation. Business delegations led by local governments from Guangdong, Zhejiang, Jiangsu, Fujian and Sichuan provinces are ramping up efforts to secure overseas orders and attract investment, as orders for some labor-intensive products have been heavily affected by the pandemic. In order to support more foreign trade enterprises to go overseas and secure orders, MOFTEC Spokesperson Shu said that it will facilitate the movement of business people, utilize both online and offline exhibitions, and help firms to obtain overseas market information, the Global Times reports.
