A view of Shanghai Photo: VCG

Themk total number of foreign-funded enterprises in China is still rising, despite some multinationals entering and exiting the market, an official from the Ministry of Commerce (MOFCOM) said on Thursday, emphasizing that China continues to be highly attractive for foreign investment.

As of the end of 2023, the total number of existing foreign-funded enterprises in China was 465,000, an increase of 46,000 compared to 2019, before the pandemic, and in 2024, 59,000 foreign-funded enterprises were newly established in China, marking a year-on-year increase of 9.9 percent, Zhu Bing, director of the Department of Foreign Investment Administration at the MOFCOM, said at a press conference. 

"This demonstrates that, despite some multinationals entering and leaving, the overall number of foreign enterprises in the country continues to grow," Zhu said, "generally speaking, the Chinese market has maintained a relatively strong attractiveness for foreign investment."

Meanwhile, an accumulative of nearly 1.24 million foreign-funded enterprises have been established in China as of 2024, with actual use of foreign capital reaching 20.6 trillion yuan ($2.83 trillion), Chinese Vice Commerce Minister Ling Ji said at the same press conference on Thursday.

By actively attracting and using foreign capital, China has attracted investment, advanced technologies and management experience, helping to promote economic development, increase tax revenue, create numerous jobs, improve residents' living standards and expand the supply of goods and services, Ling said.

"Foreign capital is a witness, contributor and beneficiary of China's reform and opening-up," Ling said, noting that attracting foreign capital will continue to play an important role in the world's second-largest economy, as the country is pursuing high-quality development as part of Chinese modernization.

Responding to a question about China's actual use of foreign direct investment (FDI), which reached 97.59 billion yuan, down 13.4 percent year-on-year in January, Ling said that the decline narrowed compared to its performance in 2024, though the downward trend persists.

He said that global cross-border investment remains relatively sluggish at the moment. Geopolitical conflicts are intensifying, and there is a notable rise in unilateralism and protectionism, which also affects the inflow of foreign capital. Due to various factors such as changes in relevant domestic industries, some multinationals are adjusting their investment layout, according to Ling.

However, China boasts a robust economic foundation, numerous advantages, strong resilience, significant potential, and a long-term trajectory of growth, Ling said. "The enormous scale of our market, a complete and efficient industrial supply chain system, and a continuously improving innovation environment provide favorable development conditions and fertile ground for multinational companies investing in China, ensuring that we have a solid foundation for stabilizing foreign investment."

According to feedback from foreign-funded enterprises, China's enormous business opportunities and innovation vitality makes the market a top priority for multinationals, Zhu said.

Many reports from foreign chambers have shown that foreign-funded enterprises in China are profitable and remain optimistic about the long-term development environment, Zhu said.

"We always welcome investors from all countries to increase their investment in China, bringing more competitive new products and services, and actively participating in the construction of our new development pattern, while sharing the opportunities of China's development," Zhu added.

Global Times