The Chinese economy continues to attract significant amounts of foreign capital, with the actual use of foreign capital on the Chinese mainland hitting 127.69 billion yuan ($18.61 billion) in January, according to the Ministry of Commerce on Monday. This represents a 14.5 percent increase year-on-year and a significant indicator of the growing interest of foreign investors in China.
In US dollar terms, the increase was $19.02 billion, reflecting a 10 percent jump from a year ago. In particular, the actual use of foreign capital in the manufacturing industry experienced a surge of 40.4 percent compared to the same period in the prior year, while the growth rate for high-tech industries was even more impressive at 62.8 percent. This signals the Chinese government’s continued emphasis on developing high-tech industries, which are expected to drive economic growth in the years to come.
The high-tech manufacturing and service industries experienced growth rates of 74.5 and 59.6 percent, respectively. This is not surprising given the Chinese government’s focus on technology and innovation, as evidenced by its “Made in China 2025” strategy, which aims to make China a global leader in high-tech industries. In this regard, the Chinese government has been successful in attracting foreign investment to these sectors.
The growth of the actual use of foreign capital in the eastern, central, and western regions of the country was also significant. In particular, the central region, which includes cities like Wuhan, has been an emerging hub for high-tech industries. The growth rate for this region was 25.9 percent, outpacing the other regions. However, the eastern region, which includes cities like Shanghai and Beijing, remains the most attractive destination for foreign investors, accounting for the largest share of actual foreign capital utilization.
Overall, the increasing use of foreign capital in China is a positive sign for the country’s economy. It reflects the confidence of foreign investors in China’s economic prospects and its ability to weather the challenges posed by the ongoing global pandemic. In the years to come, the Chinese government is expected to continue its efforts to attract foreign investment, particularly in high-tech industries, which are expected to be the key drivers of China’s economic growth.