China expects growth in actual use of foreign capital in 2021
Updated: September 8, 2021 21:23 Xinhua

BEIJING — China's top economic planner said on Sept 8 that the country's actual use of foreign capital would expand in 2021, and would be higher than expected.

In the second half of this year, foreign direct investment (FDI) in actual use will continue its sound momentum, considering China's effective COVID-19 epidemic control, stable economic recovery and complete supply chains, said Liu Xiaonan, an official with the National Development and Reform Commission.

Noting the complicated pandemic situation, declining investment capability and willingness from multinational companies and inconvenient business people exchange, Liu said those factors will affect China's actual use of foreign capital in the second half of the year.

In the first seven months of the year, the FDI into the Chinese mainland, in actual use, surged 25.5 percent year-on-year to 672.19 billion yuan, or $100.74 billion, data from the Ministry of Commerce showed.

The value increased 26.1 percent from the same period in 2019.

Stabilizing foreign investment is of great significance to China's wider opening-up, high-quality development and job stability, Liu said, adding that it is also conducive to supporting global anti-COVID-19 efforts and worldwide economic recovery.

China will provide a broader space for foreign investment, by further shortening and improving the negative list nationwide and in pilot free trade zones and relaxing restrictions on market access, Liu said.

The country will promote the full implementation of the pre-establishment national treatment plus a negative list system, and build a market-oriented, law-based and internationalized business environment, according to Liu.

China will also strengthen communication with foreign enterprises, and actively introduce relevant laws and policies to help them better integrate into China's development, he said.

China will unveil the new negative list by the end of the year, Liu said, adding that the number of items on the list will be reduced, the restrictive measures will be more precise, and the management framework and model will be improved.

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