The absorption of foreign capital has a good momentum, and the "foreign capital withdrawal theory" should stop
Tan Haojun
According to data released by the Ministry of Commerce on June 12, from January to May, 18,497 foreign-invested enterprises were newly established nationwide, an increase of 48.6% year-on-year and an increase of 12.4% year-on-year; the actual use of foreign capital was RMB 481 billion, an increase of 35.4 year-on-year. %, an increase of 30.3% over the same period in 2019.
From the above data, it can be seen that the quality of foreign investment work has improved and the scale of foreign investment investment has expanded.
Compared with 2019, the number of foreign-invested enterprises only increased by 12.4%, while the amount of foreign investment actually used increased by 30.3%.
If it were not for the increase in the scale and quality of investment by foreign-funded enterprises, how could such a change occur?
This raises a question, that is, the theory of "foreign capital withdrawal from China" that has been circulating some time ago should be stopped in the face of data.
This is because China has shifted from mere quantity to a stage where quantity and quality coexist, with quality as the mainstay.
The work of attracting foreign investment in China is not slowing down but speeding up; it is not that foreign capital has withdrawn from China, but the goal of foreign capital entering China has been adjusted; it is not that foreign capital no longer favors China, but high-quality foreign capital prefers China.
China's absorption of foreign investment is also moving towards the goal of high-quality development.
China's work on attracting foreign investment is showing a pattern of improving both quality and efficiency.
From the introduction of foreign capital in the first five months, it is not difficult to see that China's pattern of attracting foreign investment has indeed undergone major changes, and low-end manufacturing is being replaced by high-end manufacturing, high-tech enterprises, and service industries.
According to data, from January to May, the actual use of foreign capital in the service industry across the country was 381.9 billion yuan, an increase of 41.6% year-on-year; the actual use of foreign capital in high-tech industries increased by 34.6%, of which the high-tech service industry increased by 37.6%, and the high-tech manufacturing industry increased by 37.6%. 25%.
Obviously, the service industry and high-tech manufacturing industry are areas where China's economy is transformed and upgraded and achieves high-quality development.
Both the service industry and the high-tech industry have shown a good development trend in attracting foreign investment. Doesn't it mean that China has also seen a good momentum of transformation in attracting foreign investment?
One of the important reasons for the positive changes in China's work on foreign investment is that the regional structure of foreign-funded enterprises that have invested in China has undergone some new changes.
In the past, the United States, Japan, and the European Union were the main source countries of my country's foreign-funded enterprises. However, judging from the situation in the first five months, this pattern has been broken.
From January to May this year, actual investment in countries along the “Belt and Road”, ASEAN, and EU increased by 54.1%, 56%, and 16.8%, respectively, year-on-year.
The European Union is still one of my country's main regions for attracting foreign investment. Enterprises from EU countries still adhere to the principle of China as a target place for investment and insist on investing in China.
Countries along the “Belt and Road” are China's new key areas for foreign investment. The increasing enthusiasm of enterprises from ASEAN countries to invest in China shows that the cooperation between China and ASEAN countries is continuously increasing and the scope of cooperation is also expanding.
While enterprises from ASEAN countries are accelerating their deployment in China, Chinese enterprises are also very enthusiastic about investing in ASEAN, forming an interactive and win-win pattern.
In terms of the domestic absorption of foreign capital, the overall situation is high in the east and low in the west, and the absorption of foreign capital in the eastern region has shown a rapid recovery trend.
Statistics show that from January to May, the actual use of foreign capital in the eastern, central, and western regions increased by 37%, 36%, and 10.4%, respectively.
For a period of time, there was a phenomenon that the absorption of foreign capital in the central and western regions surpassed that of the eastern regions. Many people believed that the wind of foreign investment had changed.
In fact, that is not a change in the true sense. It is just that some foreign investors really hope to develop in the central and western regions and have the idea of transferring to the central and western regions.
However, the good investment and business environment in the eastern region, as well as the advantages of transportation location, also prevent foreign investors from letting go. Therefore, the eastern region is still a region that foreign investors value very much.