(Economic Observer) Surviving the "double blow" China's attractiveness to global investors is further enhanced
China News Service, Beijing, October 16 (Reporter Li Xiaoyu) Under the double blow of the epidemic and economic and trade frictions, will China lose its global investment hot land?
It now appears that these worries are unnecessary: China has successfully passed this round of tests.
According to the latest official data on the 16th, China's actual use of foreign capital in the first three quarters was 718.81 billion yuan, a year-on-year increase of 5.2%; in US dollars, China's actual use of foreign capital was US$103.26 billion, a year-on-year increase of 2.5%.
This is the first time that China's actual use of foreign capital has resumed growth in both the renminbi and US dollar cumulative indicators.
From a quarterly perspective, China’s foreign investment in the first quarter shrank by 10.8%, rebounded to 8.4% in the second quarter, and the growth rate further increased to 20.4% in the third quarter, showing a sharp decline in the first quarter, a full recovery in the second quarter, and an accelerated rebound in the third quarter.
On a monthly basis, China’s absorption of foreign capital in September increased by 25.1% year-on-year, and the growth rate hit a new high for the year, maintaining growth for six consecutive months.
While other countries are busy responding to the epidemic, China has taken the lead in getting out of the shadow of the epidemic, leading the world in the resumption of work and production and economic recovery.
In the second quarter, the year-on-year growth rate of China's GDP has turned from negative to positive, which is significantly better than that of other major economies.
In the next few months, consumption, which suffered heavy losses under the impact of the epidemic, also resumed positive growth, and commodities such as automobiles, home appliances, mobile phones, and cosmetics set off a wave of "buy, buy, buy" climax.
According to the International Monetary Fund (IMF), China may become the only country in the world's major economies that can achieve growth this year.
The economy is recovering steadily and the market scale continues to expand. This is the fundamental reason why China's attractiveness to global investors has continued to increase.
In the words of Yao Wei, China Economist at FAX, "China is reliable."
After the epidemic was quickly and effectively controlled, China immediately allowed production to resume, which was far ahead of other countries.
The outstanding performance of attracting foreign investment also reflects that although the global industrial chain and supply chain have been reshaped under the impact of the epidemic, China's position remains strong.
Zhang Wei, vice president of the Institute of International Trade and Economic Cooperation of the Ministry of Commerce of the People’s Republic of China, said in an interview with a reporter from China News Agency that although some multinational companies have set up new production links outside of China, they are mainly out of the consideration of diversifying risks and not completely. Moving out of China, China's position in the global industrial chain supply chain is still irreplaceable.
Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences, also said that China is one of the few countries in the world that has a large industrial chain, a complete range, and stable quality. It has significant comprehensive advantages.
Under the dual pressures of the epidemic and economic and trade frictions, this advantage has not diminished, but has become more prominent.
Analysts believe that after weathering the epidemic and economic and trade frictions, China will become more important in the world economy and its status as a hot investment choice will be further consolidated. This will have a profound impact on the global cross-border investment landscape in the future.
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