Multinationals serve as vital driving force to sustain China's domestic circulation: report

Multinationals serve as a vital driving force for the construction of China's domestic circulation, according to a recently released report.

Gu Xueming, President of CAITEC under MOFCOM presents the report. (Photo/chinanews.com)

The report entitled "Multinationals in China: New Opportunities Arising from a New Paradigm" was unveiled by Gu Xueming, president of the Chinese Academy of International Trade and Economic Cooperation (CAITEC), an inter-disciplinary and multifunctional social science research institution and a consultative body directly under the Ministry of Commerce (MOFCOM) of China at a forum held in Qingdao city, east China's Shandong province on July 15.

China is currently making great efforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other, so as to cultivate China's new advantages in international cooperation and competition under the new situation, the report pointed out.

The report noted that as a vital force connecting China's domestic and international circulations, multinational corporations are making full use of their advantages and are becoming an important driving force for the formation of the new development paradigm.

Photo shows industry leaders participating in the forum. (Photo/chinanews.com)

The report also showed that multinationals have played a positive role in the development of China's high-tech industry, since over the past five years, the cumulative amount of foreign capital actually used by the high-tech industry reached $145.6 billion, accounting for more than 20 percent of the total amount of foreign capital actually used nationwide.

Meanwhile, multinationals also increased their investment in China's circulation industry. The amount of fixed assets investment in transportation, warehousing and postal services rose from 65.47 billion yuan ($10.12 billion) in 2015 to 87.3 billion yuan in 2019, with a total investment of 440.2 billion yuan over the past five years, spurring the development of China's transport and warehousing infrastructure.

According to statistics from MOFCOM, by the end of 2019, more than 1 million multinationals and over 490 Fortune Global 500 companies invested in China.