China’s foreign investment fell 26.1% in the first quarter, to 301.7 billion yuan, equivalent to 41.7 billion USD.
This is also the weakest annual first quarter since 2020, according to data recently released by the Chinese Ministry of Commerce. The scale of foreign investment capital in this country has gradually decreased over the past 3 months, from 113 billion yuan in January, to 102 billion yuan in February and 90 billion yuan last month.
Ji Xiaofeng, an official at the Ministry of Commerce, said the decline was partly due to a high base in the same period last year. Compared to the fourth quarter of 2023, foreign investment capital in China in the first quarter increased by 41% and the investment structure improved.
Operational in Lianyungang, Jiangsu province, China on April 12. Image: Reuters
Speaking at the Boao Forum for Asia last month, deputy director of China’s foreign exchange administration Xu Zhibin said that China’s foreign direct investment developments were “basically in line with global trends.” .
The world’s number two economy is making efforts to attract more investors. Speaking at the China Development Forum in Beijing in March, Premier Li Qiang pledged to improve the business environment and step up reforms in key areas to create a “more open China.” ” and cooperate with the world.
On Friday (April 19), China announced measures to promote foreign investment, amid signs that some technology corporations are considering leaving.
Specifically, the Ministry of Commerce of this country said it would support foreign organizations to issue bonds in yuan domestically, and loosen restrictions on foreign strategic investments in Chinese listed companies. Quoc.
Beijing also encourages foreign technology companies to raise money through bond issuance, creating favorable conditions for foreign investors to participate in Chinese technology companies and will approve “effectively results” of licensing foreign investment in Chinese stocks and bonds.