Actually used foreign investment in China has seen robust gains since the start of 2022, despite heightened geopolitical tensions and the adverse impact of renewed Covid lockdown measures.
China’s nationwide actually used foreign investment funds totalled 1.08986 trillion yuan for the first ten months of 2022, for a year-on-year (YoY) rise of 14.4% in comparable terms, according to a report from state-owned media.
Government officials hailed the strong pace of growth as arriving despite the high baseline figure from the previous year.
“Despite it being hard to have optimism for the global cross-border investment outlook, we achieved double digit growth on high foundations, after actually used foreign capital broke though the trillion yuan threshold for the first ten months of the year last year,” said Lin Meng (林梦), head of the Modern Supply Chain Research Institute of the Ministry of Commerce.
“This fully highlights the strong appeal of the Chinese market for cross-border investment.”
Lin points out that foreign investment in China is increasingly drawn to the country’s tech sectors. In the first ten months of 2022, actually used foreign investment in China’s tech sector grew 31.7%, including 57.2% growth in tech manufacturing and 25% growth in tech services.
Asian nations stepped up their investment in China since the start of 2022, with South Korea’s actually used investment in China growing 106.2% compared to the same period last year, and Japan’s seeing a 36.8% increase.