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Increasing FDI flows shows China's economic prospects: MOF

(People's Daily Online)    14:54, October 31, 2019

Despite the worsening of global investment and heated trade war between the US and China, China's Foreign Direct Investment (FDI) flows increased by 5 percent in the first six months of 2019, with Geng Shuang, spokesperson of China's Ministry of Foreign Affairs, commenting that China will further open its door to the world, and continue to combat unilateralism and protectionism with the help of the international community.

"The fall of FDI in the first half of this year further testifies to the worsening of global investment, and the biggest factor leading to this situation is protectionism and unilateralism," said Geng during a press briefing on Wednesday.

Geng's comments came after the Organization for Economic Co-operation and Development (OECD) issued an FDI report on Monday, in which OECD noted that the global FDI fell 20 percent in the first half of 2019 to $582 billion, dropping by 5 percent in Q1 2019 and by 42 percent in Q2.

The report also noted that though the United States regained its position as the primary source of FDI worldwide in Q2, the FDI flows into the US dropped by more than a quarter, while, by contrast, flows to China increased by 5 percent.

"It's obvious who is becoming more open and who is becoming more conservative," added Geng.

FDI flows to the United States from China dropped from a peak of $16 billion in the second half of 2016 to less than $1.2 billion as Chinese companies continue to invest less and sell off some of their direct investments in the United States.

Geng noted that during the second China International Import Expo, which is to be held soon in Shanghai, 192 American businesses would attend the event, an 18 percent increase compared to 2018, with a total exhibition area of about 47,500 square meters, the biggest among all participating countries.

"This again shows that businesses from around the globe, including American ones, are optimistic about China's economic prospects and market potential, and wish to continue investing in China and deepen cooperation with China," said Geng.

The spokesperson also reiterated China's stance on opening up, calling for the international community to join hands against unilateralism and protectionism, providing a fairer, more just and predictable business environment for investors, as well as fostering an open world economy.

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Sheng Chuyi, Bianji)

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