To attract more foreign investment, fresh favorable policies expected

THE MINISTRY OF COMMERCE has released data on recent foreign investment statistics that show China is still attractive to foreign investors. China Daily writer Wang Yiqing comments:

Claims of large-scale foreign investment flight from China are frequently made by Western media trying to portray a damaging economic slowdown for China.

But such claims are not supported by the data, which show that from January to October there were 33,407 newly established foreign-invested enterprises in China according to the Ministry of Commerce. During this period foreign investment in actual use in China was 752.41 billion yuan ($107.11 billion), up 6.6 percent year-on-year. In the single month of October, foreign investment in actual use was 69.2 billion yuan, which was a year-on-year increase of 7.4 percent.

Globally, foreign direct investment declined 20 percent in the first half of the year, according to recent data released by the Organization for Economic Cooperation and Development, while FDI flowing into the United States declined more than 23 percent in that period. FDI in China increased 5 percent over the same period, which shows foreign investors' confidence in China's economy.

The latest global investment report issued by the United Nations Conference on Trade and Development also shows that China remains the second-largest foreign investment inflow economy worldwide despite the global economic downturn and the trade conflict between the US and China.

China's achievements in attracting foreign investment despite the global economic downturn show the attractiveness of China's huge domestic market, which is due to the country's continuous endeavor to promote reform and opening-up and improve its business environment. Recently, the central government shortened the negative lists for foreign investment, and the Foreign Investment Law, which will come into effect on Jan 1, demonstrates China's determination and enthusiasm to improve the business and investment environment for foreign investors and better protect their interests.

Zong Changqing, director of the foreign investment department of the Ministry of Commerce, said at a news conference on Nov 18 that the country will introduce more favorable foreign investment policies, such as preferential taxes and land use policies, that will be conducive to further boosting foreign investment in China.