China's actual use of foreign direct investment (FDI) rose 10% year-on-year to USD19.02 billion in January, with the high-tech manufacturing sector showing particular growth. According to the Commerce Ministry (MOFCOM), FDI in the high-tech manufacturing sector surged 74.5% year-on-year. Use of foreign capital in manufacturing in general rose by 40.4%, while FDI in high-tech industries increased by 62.8%. By region, eastern China recorded a 13.4% increase in the actual use of FDI, with 25.9% for central China and 21.6% for western China. Growth momentum picked up from last year, when FDI hit USD189.13 billion, rising 8% in U.S. dollar terms.
International organizations and investment banks have raised their projections for China's economic growth in 2023 following an impressive recovery of consumption in January and February. The Chinese economy is projected to grow 5.2% year-on-year in 2023, the IMF said in its latest World Economic Outlook. Some economists expect GDP growth of up to 6%, supported by the country's optimized pandemic response and effective pro-growth policies, injecting confidence and impetus into growth. Top executives from multinational companies are traveling back to China with the country's recent reopening, even as the tech competition between China and the U.S. is intensifying. According to the Wall Street Journal, Volkswagen's CEO visited China from late January to early February, while Apple CEO Tim Cook and Pfizer CEO Albert Bourla are expected to visit China next month. Ola Källenius, Mercedes-Benz Group's Chairman, also plans a visit to China, the Global Times reports.
