Gao Shangde, an official with the Ministry of Commerce, analyzed the pattern of foreign capital inflow in the first ten months of this year, saying that growth has been seen in industries such as telecommunications, computers, and office equipment manufacturing.
"The foreign investment attracted by the manufacturing industry keeps expanding. Between January and October, the actual use of foreign capital in the manufacturing industry increased 6.1 percent year-on-year, 4.2 percent higher than the total amount of actual use of foreign capital. Hi-tech manufacturing accounting for 22.9 percent of the growth was the main driver."
In the first half of this year, China unleashed positive signals in attracting foreign capital, including its efforts on the negative list, tax reduction, and protection of Intellectual property rights.
According to Yang Changyong, a researcher from the Academy of Macroeconomic Research of the National Development and Reform Commission, the strong momentum was supported by the sound economic growth in the first three quarters as well as the international environment.
"The world economy has shown good momentum this year. Recently, the IMF and other organizations raised their expectations for the world economy in the next two years. In general, enterprises tend to venture more into investment when the economy shows good signs. Otherwise, they will be cautious. The recent good economy is stimulation to investment."
As the report to the 19th CPC National Congress pointed out that China's doors will only open wider, many business insiders are also expecting more favorable policies to foreign capital.
Yang observed that the structure of the inflow foreign capital will be improved.
"The main feature is stability and improved structure. Our comparative advantage has been changing. We used to rely on low cost, cheap labor, land, and energy to attract foreign capital. But now we have a huge market and well-educated labor force."
He added that China's business policies are also changing towards middle and high-end manufacturing, service, and agricultural sectors.
For CRI, I'm Guan Chao.
