Inside the Starbucks store near Shanghai World Financial Center
Photo: GT staff reporter
Overseas-funded firms’ confidence in the Chinese market has risen lately, with the world’s second largest economy’s recovery gaining pace, thanks to a number of the government’s targeted economic stimulus measures.
As of the end of September, there were 684,000 overseas-funded enterprises that had registered across the country this year, an increase of 1.5 percent from the end of 2022, the State Administration of Market Regulation said on Tuesday.
In the first three quarters of 2023, newly established overseas firms totaled 46,586, exceeding the level of the same period before the sudden outbreak of the pandemic in early 2020.
In June and September, the number of newly established overseas firms was recorded at more than 6,600 in each month, reflecting a clear upward trend.
Among the newly established foreign firms, services sector-related ones witnessed a rapid pace of expansion, reaching 43,193 in the first nine months, up 32.6 percent on a yearly basis.
In terms of investment source, China’s Hong Kong, Macao and Taiwan, South Korea, the US, and Japan are high on the list of newly established foreign-funded enterprises in the Chinese mainland in the January-September period. Countries with rapid year-on-year growth include Russia, Brazil, Canada, and Australia.
China has been ramping up efforts to attract foreign firms, including consistently trimming the negative list for foreign investment, demonstrating the resolve of Chinese government in expanding opening-up, experts said.
In August, China’s State Council issued a statement outlining its guidelines regarding further optimizing foreign investment environment and intensifying efforts to attract foreign investment, aiming to improve the overall balance between domestic and international situations and foster a world-class business environment that is market-oriented, law-based, and reflects international best practice.
Overseas capital, which has contributed significantly to Chinese economy and gained remarkable returns over the past decades, has voiced their firm and clear strategy to root for the economy amid chaos stirred up by some Western politicians and media outlets.
Data from the Chinese Ministry of Commerce showed that in the first three quarters of this year, the actual use of foreign capital in the manufacturing industry in China increased by 2.4 percent year-on-year, with the actual use of foreign capital in high-tech manufacturing increasing by 12.8 percent year-on-year, indicating the high quality of foreign investment.