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        Non-financial sector FDI grows by 1.9% in first 10 months

        By Zhong Nan | China Daily | Updated: 2017-11-15 07:50

        Foreign direct investment in China's non-financial sectors grew 1.9 percent year-on-year between January and October to 678.7 billion yuan ($102.19 billion), the Ministry of Commerce said on Tuesday.

        A total of 26,174 newly funded foreign companies were established in the first 10 months, up 15.9 percent year-on-year, according to a statement from the ministry.

        Non-financial sector FDI grows by 1.9% in first 10 months

        Experts said that global investor confidence was strengthened by the country's ongoing supply-side structural reform and other initiatives to further open the economy.

        Eager to boost the country's capacity to attract more foreign capital, the Ministry of Commerce abolished a regulation on the review and management of representative offices of foreign business in China in September, as well as continuing to urge many domestic businesses to deepen reform and break their monopoly operations.

        The regulation, issued in 1995, included stringent rules for foreign enterprises, such as the need for written applications to establish representative offices in China and the need to register within 30 days when they received approval, or it would be invalid.

        These moves aim to deepen reform in streamlining administration, delegating power and optimizing services, said Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing.

        Against the backdrop of the government's pledge to build an international and fair business environment to further attract foreign investment, Li said new policies will help improve the business environment and boost China's attractiveness to global investors.

        Even though eastern regions continued to attract most FDI, its growth was rising at a much faster pace in landlocked central and western provinces and regions. They attracted 50.6 billion yuan in FDI during the 10-month period, surging 47.9 percent on a year-on-year basis.

        High-tech manufacturing attracted 56.65 billion yuan in FDI from January to October, up 22.9 percent year-on-year, while the high-tech service sector gained $95.01 billion in FDI, up 20 percent.

        Lin Guijun, a professor at the University of International Business and Economics in Beijing, attributed the fast FDI growth to effective policy that has boosted foreign investors' confidence, as well as the accelerated process of industrial restructuring. A number of key manufacturing projects launched in September and October also boosted the aggregate volume.

        Lin said there will be a continued effort to attract FDI in the future as opening up and reform continues and high-level free trade zones are completed.

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