36 2 Why is there a significant increase in the number of newly established foreign invested enterpr

Mondo Finance Updated on 2024-02-01

Recently, there has been a lot of good news in the field of foreign investment

The number of KFC stores in China exceeded 10,000.

Volkswagen's Anhui production base will start production of the Cupra T**Ascan for the European market, and another model for the domestic market will roll off the assembly line this year. Volkswagen Group plans to invest a total of CNY 23.1 billion in Anhui.

The new stores and new investments are a vivid example of multinational companies' optimism about China.

According to data released by the Ministry of Commerce, from January to November 2023, 48,078 foreign-invested enterprises were newly established across the country, a year-on-year increase of 362%。How do you view the situation of foreign investment?

The analysis of foreign investment data should be measured in the context of global investment**.

At present, global cross-border investment continues to be sluggish, showing trends such as nearshoring, localization, and regionalization. According to the UNCTAD report, the scale of global cross-border direct investment in 2022 fell by 12 percent year-on-year4% to 1$3 trillion, only about 60% of the all-time high. In the first 11 months of 2023, China's newly established foreign-invested enterprises increased by 36% year-on-year2%, which strongly shows that China is still the best investment destination in the world.

The analysis of foreign investment data should also be considered in the longitudinal coordinate system.

From 2019 to 2021, China's absorption of foreign capital has set a new historical record for three consecutive years, and the actual use of foreign capital from January to November 2022 has reached 116 trillion yuan, the highest level in the same period in history. When the scale of foreign investment increases to a historical high, the slowdown in growth and the inflow and outflow are in line with the laws of the market. In the first 11 months of 2023, China's investment scale reached trillions of yuan, which is still at a historical high, indicating that the momentum of foreign investment in China is still unabated.

To analyze the data of foreign investment, we must look at both the scale and the quality.

China's use of foreign capital is transforming towards high-quality development. From January to November 2023, the scale of investment in China's high-tech industry will reach 3866500 million yuan, accounting for 37 percent of the country's foreign investment2%, an increase of 1 from the level of the whole year of 20221 percentage point. Starting from the reality of dynamic adjustment of domestic and international industrial development, with the acceleration of the construction of China's modern industrial system, the advantages of industrial development have changed from relying on factor input to being driven by scientific and technological innovation, and foreign-funded enterprises attach more importance to the competitiveness of the Chinese market and actively adjust their investment layout in China in line with the trend of China's industrial upgrading.

For foreign-funded enterprises, the Chinese market has long become a training ground and touchstone to enhance their core competitiveness.

In the near future, the total investment is 1The $500 million Schneider Electric Wuxi Green Smart Industrial Park is under construction in an orderly manner. After the completion of the project, it will become a comprehensive park integrating the concept of green and sustainable development, digital factory and R&D and innovation.

China is one of the driving forces for Schneider Electric's continuous development and innovation, and now China has developed into the world's second largest market for Schneider Electric, and we are full of confidence in the Chinese market and will always adhere to the 'China Center' strategy to contribute to the high-quality and sustainable development of China's economy." Schneider Electric's Chief Chain Officer Mourad Tamoud said.

China has a huge market, excellent business environment, complete chain ecosystem and talent advantages, and it is difficult to find a market like China. The next 'China' is still China. Zhang Yihao, Executive Vice President of GE Healthcare, said.

At the beginning of the new year, walking on the Nanjing Road Pedestrian Street in Shanghai, the newly upgraded Häagen-Dazs concept store has attracted the attention of many tourists, with a well-designed taste wall, cloth screen walkway and handmade pint cup sculpture wall, creating a strong humanistic atmosphere, demonstrating Häagen-Dazs's determination to comply with the trend of China's consumption upgrading and meet the needs of personalized and diversified markets.

The starting point and end goal of Chinese modernization is to enable more than 1.4 billion Chinese people to live a better life, which means a broader market and unprecedented cooperation opportunities for the world. A high-level opening up China will surely provide more new opportunities for the business community of all countries with its new development.

**: People's client

Process edit: u029

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