State Council underlines creating good environment to attract FDI

In a guiding document on further optimizing the foreign direct investment environment, the State Council, China's Cabinet, has called for better coordination of both domestic and international perspectives, aimed at creating a market-oriented, law-based, and internationalized first-class business environment.

Attracting FDI is an important aspect of advancing high-level opening-up and building an open economy. FDI plays a significant role in promoting China's industrial upgrading, increasing tax revenue and facilitating employment.

However, in recent years, with the global economic growth slowing down, the rise of trade protectionism, and the tense geopolitical situation, uncertainties have increased for investors. A report from the United Nations Conference on Trade and Development showed that global FDI decreased by 12 percent last year compared with the previous. China's actual use of FDI in the first half of this year amounted to 703.65 billion yuan ($96.87 billion), a 2.7 percent year-on-year decrease, the first decline in three years.

The decrease might be marginal compared with other nations, but it's the reason the document was issued. With 24 specific policy measures, the document underscores the continuous strengthening of protection for FDI, as well as the enhancement of the ease of investment and operation.

FDI reflects medium- to long-term investment intentions, with investors giving great importance to a country's long-term economic prospects and foundational advantages. The fundamental aspects of China's economy, characterized by resilience, potential and a positive long-term trajectory, remain unchanged. Its open market provides ample opportunities for businesses from various countries to grow.

In recent days, top executives from multinational corporations such as Microsoft co-founder Bill Gates, Tesla CEO Elon Musk, ARM CEO Hermann Hauser, JPMorgan Chase CEO Jamie Dimon, Apple CEO Tim Cook and Qualcomm president Cristiano Amon have visited China, indicating their "trust" in China's business environment and "confidence" in its development prospects.

From the promulgation of a foreign investment law in 2020 to the official implementation of a revised industry catalog for foreign investment on Jan 1, and the protection of foreign investment, China has consistently provided a stable expectation for foreign investment amid the uncertainties of the global economy.

Foreign investment from around the world into China deepens the connection between China and the global economy. China's commitment to high-level opening up and its greater efforts to attract and utilize foreign investment also inject strong impetus into the recovery and prosperity of the world economy.

THEPAPER.CN