Biased to say foreign investment leaving China: minister

 

By Qiang Wei -Mareeg.com-Chinese Commerce Minister Gao Hucheng on Tuesday dismissed concerns that foreign investment is leaving China, saying claims to that effect are “biased.”

He made the comment during a press conference held by the State Council Information Office when answering a question about concerns about “withdrawal of foreign investment” from China.

 

“In recent years some production has indeed moved offshore, but at the same time many advanced industries have moved to China,” Gao told reporters, adding that this shift was decided by the market’s decisive role in resource allocation.

He further explained that foreign investment in any country flows in and out in response to the development of the economy and changes in the industrial structure.

Gao also denied speculation about the foreign direct investment (FDI) drop last month, saying that Spring Festival contributed to the lower monthly figure. “One month’s figure can never be used to summarize a long-term trend”, he stressed.

Although global FDI plummeted last year, China utilized some 813.2 billion yuan ($126 billion) of FDI, a year-on-year increase of 4.1 percent, he said.

FDI into sectors including pharmaceutical manufacturing, medical equipment and high-tech services registered increases of 55.8 percent, 95 percent and 86.1 percent respectively, Gao said.

The minister added that attracting foreign investment is an important component of China’s opening-up policy, and the country will increase its efforts in this regard in 2017.

According to him, China will roll out favorable policies to reduce access restrictions for foreign investment and encourage foreign investment into the country’s central, western and northeastern regions.

China will facilitate the inflow of foreign investment by replicating the successes of pilot free trade zones in terms of license application, rulemaking and the introduction of specialized talent, Gao continued.

A fair, transparent and predictable business environment will be created so that foreign-funded enterprises will be assured a level playing field in their competition with local players, he added.

China will remain the most competitive and appealing destination for foreign investment as its growing economy is accompanied by an improved market economic system, he pledged.  People’s Daily

 

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Mareeg senior news editor since 2001 and he can be reached at news@mareeg.com