China’s Actually Used Foreign Investment up 14.5% in January, Foreign Ministry Says Sino-US Economic Decoupling “Unworkable”

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China’s foreign ministry says Sino-US business ties continue to remain healthy and active, despite worsening political tensions between Beijing and Washington.

Official Chinese data indicates that in January the amount of actually used foreign capital in China reached 127.69 billion yuan, for a year-on-year surge of 14.5%.

Mao Ning (毛宁), a spokesperson from China’s Ministry of Foreign Affairs, said that the figures indicate that China remains a popular investment destination for foreign capital.

“Facts have proved that China is a hot spot for investment by foreign enterprises,” Mao said.”Foreign companies, including American companies, continue to be optimistic about the Chinese market and plan to expand their business in China.

“According to data from the U.S. Department of Commerce, the total trade in goods between the U.S. and China hit $690.6 billion in 2022, a record high.

“This all shows that Sino-U.S. trade and investment cooperation is mutually beneficial and win-win in nature. ‘Decoupling and breaking the chain’ harms others and harms one’s self. It is unpopular and unworkable.”

The American Chamber of Commerce in South China recently released its “White Paper on China’s Business Environment in 2023” (2023年中国营商环境白皮书), indicating that more than 90% of companies surveyed regard China as one of their most important investment destinations, while 75% of the companies surveyed plan to reinvest in China this year.

Mao Ning highlighted several factors that continue to enhance the lustre of China for overseas companies.

“On the one one hand, they benefit from China’s super-large-scale market and complete production and supply chain network, while on the other hand, they also benefit from China’s unswerving promotion of high-level opening, its support for a bilateral trade system, and its ongoing provision of a more market-based, rule-of-law based and internationalised commercial environment for foreign capital.”