People's Review: Three data points of foreign investment in China reflect three 'assurances'

The latest data from the Ministry of Commerce shows that in the first five months of this year, the net increase in various types of foreign investment in China was about 160 billion US dollars, and the net increase in foreign equity investment in China during the same period was over 50 billion US dollars. Among them, the reinvestment of domestic profits by foreign-funded enterprises increased by 35% year-on-year. These three data outline the latest trajectory of foreign investment in China. Faced with the noise of "foreign capital withdrawing from China", global capital is making real choices with real money. So, what exactly is foreign investment betting on for China?

It is certain that the "chassis" of the Chinese economy is solid enough. The global industrial chain and supply chain are accelerating their adjustment, and the investment logic of multinational enterprises has long moved beyond a single cost consideration to anchor industrial systems, market space, innovation capabilities, and institutional environments. China has the world's most complete industrial chain and a super large domestic demand market, which constitutes an irreplaceable "ballast stone" for any economy. In the first half of this year, the number of newly established foreign-funded enterprises in China increased by 5.3% year-on-year, with a total investment of 402.14 billion yuan. The investment structure has been further optimized, and the investment in high-tech industries has increased by 33.2% year-on-year, accounting for 42.4% of the total. Foreign investment continues to be optimistic about the Chinese market, with nearly 4800 foreign-funded enterprises increasing their investment in China in the first half of the year. This is not a short-term dividend game, but a strategic bet by global capital on the long-term certainty of the Chinese economy.

It is certain that the "track" for China's industrial upgrading is broad enough. In the past, foreign investment usually kept core R&D and design processes in their home countries, and only laid out manufacturing processes in China. In the first half of this year, the inflow of foreign investment in China's high-tech service industry and high-tech manufacturing industry increased by 61% year-on-year, accounting for 36% of the total capital inflow, an increase of 11 percentage points compared to the same period last year. Foreign investment is intensively entering emerging fields such as artificial intelligence, new energy, biomedicine, and green transformation. What is more noteworthy is that foreign-funded enterprises in China are transforming from "manufacturing bases" to "innovation source areas". The Swiss pharmaceutical giant Novartis, which has just announced to expand its investment in China by more than 3.3 billion yuan, has reached cooperation with many Chinese local innovative pharmaceutical enterprises since 2024, with a potential investment of more than 80 billion yuan. Its new drugs have been approved faster in China than in Europe. More and more multinational companies are establishing regional headquarters and global research and development centers in China. From "cost arbitrage" to "value co creation", foreign investment is shifting the focus of industrial layout and redefining China's position in the global economic map.

It is certain that the "door" of China's high-level opening-up will continue to open. In 2025, China's opening up process in telecommunications, the Internet, education, culture, medical care and other fields will be significantly accelerated, and the policy focus has moved from "access" to "permission". The Action Plan for Utilizing Foreign Investment to Stabilize and Promote Excellence proposes 15 measures in five major areas; The restrictions on foreign investment access in the manufacturing industry have been fully cleared, and the opening up of the service industry continues to deepen; Pilot projects such as value-added telecommunications, biotechnology, and wholly foreign-owned hospitals are steadily expanding. The outline of the 15th Five Year Plan lists "actively expanding independent opening up" as the primary task for expanding high-level opening up to the outside world. Foreign funded enterprises have seen the bright prospects and investment opportunities of the Chinese economy through the 15th Five Year Plan, and China is shaping new advantages in attracting foreign investment through institutional opening up.

Foreign investment is confident and invests in trust. This confidence and trust stem from both the hard power of the Chinese economy and the high-level open soft environment. The resilience of the Chinese economy, the certainty of policies, and the depth of the market are upgrading Chinese assets from "optional" to "mandatory" for global allocation. Looking towards the future, China will steadily expand its institutional opening-up and build a new system of higher-level open economy. While promoting its own high-quality development, it will inject more positive energy into the recovery and growth of the world economy.