Ministry of Commerce: High tech industries account for over 40% of China's foreign investment increment

Beijing, August 25th (Xinhua) - Ling Ji, spokesperson, deputy minister, and deputy representative for international trade negotiations of the Chinese Ministry of Commerce, stated in Beijing on August 25th that high-tech industries account for over 40% of China's foreign investment growth.

Ling Ji said at a press conference held by the State Council Information Office on the same day that in recent years, there have been some changes in the investment of multinational companies in China.

Firstly, foreign investment in China is no longer solely based on traditional factors such as labor and land costs. They are more concerned with efficient industrial ecology, superior infrastructure, especially the supply of new production factors such as green electricity and computing power, as well as an efficient supply chain system, a vibrant innovation ecosystem, and high-quality talent supply. These advantages are important driving forces for the development of multinational corporations in China, and also important factors for them to form competitiveness globally.

Secondly, early multinational corporations mainly targeted the "funding and supply gap" in China, and could quickly achieve success in China by introducing capital, mature technology, business models, and management. He pointed out that in recent years, with the improvement of China's industrial development level, market competition has become increasingly fierce, and consumer application scenarios have become richer and more diversified. More and more multinational companies are using China as a "training ground" to enhance their global competitiveness, and some even vividly call it a "fitness room".

He also mentioned that in the past, many foreign-funded enterprises invested in China by building their own research and development and supply chain systems. With the increasingly complete and efficient industrial and supply chain system in China, more and more foreign-funded enterprises are deeply integrating into China's industrial ecology, continuously improving their localization level, and strengthening their collaborative development with Chinese partners.

Ling Ji stated that as multinational corporations continue to deeply cultivate the Chinese market, the situation of attracting foreign investment in China is also stable and improving. Currently, the stock of foreign investment in China is relatively stable, and the entry of foreign investment in high-tech industries is constantly increasing. A recent survey report released by chambers of commerce in China from some countries shows that most foreign-funded enterprises have achieved good profits in China, and their willingness to increase capital and layout has generally increased.