China’s NDRC promises more measures to attract foreign investment

Workers weld in a workshop of an automobile manufacturing company in Qingzhou city, east China’s Shandong province.

China’s top economic planner said on Thursday he would soon roll out more policies and measures for the manufacturing sector, aimed at increasing foreign investment, adding to a series of steps China has already taken to stabilize its economy, trade and foreign investment.

In order to increase foreign investment, China will pursue the 2022 edition of the Catalog of Encouraged Industries for Foreign Investment, which will further expand the scope of encouragement and guide foreign investment in key areas such as manufacturing and services. to producers, the National Development and Reform Commission (NDRC) said on Thursday.

A special working team mechanism for major overseas-funded projects will be further improved, while China will speed up the implementation of the first five rounds of overseas-funded projects, NDRC said.

The announcement came after a government meeting on Wednesday urged to further stabilize the economy in the fourth quarter. Chinese officials have called for concrete steps to ensure the economy remains balanced and within a reasonable range.

Prior to this, China issued and implemented sets of policies aimed at boosting and stabilizing the economy, trade and foreign investment.

The effectiveness of policy packages aimed at stabilizing the economy will continue to be seen in the fourth quarter and even the first half of 2023, Hu Qimu, deputy secretary-general of the 50 Digital and Real Economies Integration Forum, told the Global Times.

China is still focusing on the long-term development of the policy provision, such as new energy vehicle consumption incentives, which will be extended until the end of next year, Hu said.

Under the impact of the U.S. Federal Reserve’s aggressive interest rate hikes, the global economy is facing growing uncertainty, China’s economic stability and resilience have created predictability, said Li Yong, vice -Chairman of Expert Committee of China International Trade Association. Global Times Thursday.

Among the positive effects brought by China’s intensive policies, business confidence improved in the third quarter, according to a trade survey report released Thursday by the China Council for the Promotion of International Trade.

Total export orders are expected to be stable compared to last year, also affected by a sporadic epidemic and the crisis in Ukraine, Li Yansong, director of Guangzhou Magi-Wap Culture Articles Co, told the Global Times. The company’s main customers are in the United States, Europe and Australia.

Retail sales rose 5.4% in August from a year earlier. Consumption of services has gradually recovered, with food and beverage revenue rising 8.4 percent year-on-year in August, the Ministry of Commerce (MOFCOM) said on Thursday.

Meanwhile, China’s actual use of foreign capital rose 16.4 percent year-on-year from January to August, amounting to 892.74 billion yuan ($124.06 billion), according to data. MOFCOM statistics.

In particular, EU investments increased by 123.7% on an annual basis, contrary to claims made in the annual position paper published by the EU Chamber of Commerce in China (EUCCC) on September 21, which alleged that China was a promising investment. destination declined and its central role in global supply chains was threatened.

According to Hu, EU manufacturing costs have soared to an unsustainable level, resulting from stubbornly high inflation, irresponsible US rate hikes and high energy costs. This will highlight the critical importance of Chinese supply chains.

Li Yong also noted that China’s State Council has been working on improving the domestic business environment, while the current business environment in Europe is deteriorating.

In May, the CCPIT established a working group for foreign enterprises in China, which provided a new channel and more convenience for foreign enterprises to express their inquiries and resolve their difficulties. This will boost the confidence of foreign companies to set up and grow in China, the CCPIT said on Thursday.

Despite the downward pressure, the problems China is currently facing are short-term shocks that will not lead to systemic risks, Hu said. “The resilience of the Chinese economy means that China has plenty of room for adjustment,” Hu said.