China approved the establishment of nearly 25,000 foreign-funded companies in 2012, down over 10 percent from the previous year. The country drew over 111.7 billion U.S. dollars of foreign direct investment (FDI) last year, down nearly 4 percent from a year earlier, marking its first annual decline since 2009. Certain experts consider it a sign of massive manufacturing relocation.
FDI in China, particularly in its manufacturing sector, dropped slightly last year. Certain foreign manufacturers have relocated to their home countries, and certain domestic manufacturers are expanding abroad, which is normal. There are no signs of a massive relocation of foreign companies away from China, but the Chinese government should still make efforts to actively encourage the use of foreign capital.
The representatives of many foreign companies in China said at a conference held by the China Association of Enterprises with Foreign Investment on Jan. 14 that their companies are optimistic about China's investment environment, and will continue to increase investment in the country. For example, Wal-Mart plans to substantially increase the number of its outlets, and the representatives of Veolia Environment S.A. and many other multinational corporations (MNCs) that engage in environmental products, manufacturing, retails, and other fields said that they remain optimistic about investment prospects in China.
China was the largest FDI recipient among developing countries for the 20th straight year in 2012, showing MNCs' great confidence in the country's investment environment.
China will make efforts to improve the level and quality of its foreign capital utilization on the basis of stable foreign capital policy and FDI inflows.
The author is a spokesperson for Chinese Ministry of Commerce
Read the Chinese version: 人民日报点睛：外企仍看好我国投资前景
Source: People's Daily
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