CNBC:

The scale of foreign investment attracted by China declined in 2023. What are the main reasons for this? What measures will the MOFCOM take to attract more foreign investment this year? What areas will the MOFCOM pay more attention to? Thank you.

Wang Wentao:

Thank you for your questions. These are pressing questions that everyone is closely monitoring. I will elaborate on them.

Domestic and international media have closely monitored fluctuations in the scale of China's foreign investment attraction, with many reports on the subject. First, instead of delving into a series of data analyses, let me start with perspective and vision. What I want to emphasize is that this issue should be observed and analyzed from multiple perspectives. Premier Li Qiang, in a recent speech in Davos, mentioned that one must broaden their vision and take a panoramic view to see the whole picture in an objective and comprehensive manner . This is how I will answer your question.

If we take a longer-term perspective, China's foreign investment scale has remained high in recent years. Last year, China actually utilized foreign investment of $163.25 billion, equivalent to 11.3 trillion yuan. Although this was a year-on-year decline, the scale was only surpassed by two exceptional years, 2021 and 2022, ranking as the third highest in history.

From a structural analysis perspective, we look not only at the numbers but also at the structure of foreign investment, which involves analyzing its quality. The structure of foreign investment in China has continuously been optimized, with the proportion of high-tech industries reaching 37.4%, up 1.3 percentage points from 2022, reaching a historical high. In particular, the proportion of foreign investment in the manufacturing sector has increased by 1.6 percentage points to 27.9%. However, the rankings of countries can be influenced by certain foreign projects, especially large-scale projects from specific nations, introducing a level of uncertainty. Looking at the country-specific investment situation in 2023, developed countries such as Canada, the United Kingdom, France, Switzerland, and the Netherlands have significantly increased their investments in China. The number of newly established foreign-funded enterprises in China from the European Union, the United States, and Japan has also seen growth.

As mentioned earlier, short-term foreign investment data may experience fluctuations. This is a normal phenomenon in accordance with economic laws. In particular, the implementation of large-scale projects often affects the fluctuations of the current and following years. The fundamental strength of China's long-term economic growth remains unchanged, especially with China's commitment to the fundamental national policy of opening up to the outside world. China has always embraced an open attitude and sincerely welcomes enterprises from all countries to invest in China. We firmly believe China will continue to be a popular destination for foreign investment.

Last year, following central deployments, the MOFCOM conducted the "Invest in China" campaign to attract foreign investment. Throughout the year, we hosted 20 key events and facilitated over 600 supporting activities in various regions. These efforts led to the signing of several major projects and resolved numerous issues. We also established a system of roundtable meetings with foreign-funded enterprises to enhance regular communication and exchange with them and foreign business associations. At the ministerial level, my colleagues and I organized 15 roundtable meetings last year, with the participation of over 400 foreign-funded enterprises and foreign business associations. Through face-to-face interactions, we gained insights into the suggestions and needs of these enterprises and continued to work towards resolving their issues. We have also heard from some foreign-funded enterprises that these activities not only address specific issues but also demonstrate China's determination to openness and its welcoming attitude toward foreign investment. They have also recognized the pragmatic and efficient approach of the Chinese government, which has further strengthened their confidence in the Chinese market and economy. Some foreign-funded enterprises have asked where the next "China" will be. However, they firmly believe that the "next China" will still be China. They will continue to choose China and establish their businesses here.

Building on last year's "Invest in China" campaign, we are continuing to develop the "Invest in China" brand this year. We have preliminary plans to organize over 20 investment promotion activities, both domestically and internationally. These activities will include a flagship event, the 2024 "Invest in China" Summit, as well as 10 overseas activities and 12 domestic activities. We will support local governments in hosting complementary events under the "Invest in China" brand, leveraging their regional advantages, resource endowments, and industrial characteristics. This coordinated approach will create a unified national investment promotion strategy. Many of you in the media have shown interest in or reported on the "Invest in China" campaign last year. We kindly request your continued coverage of our "Invest in China" brand series of activities this year. We hope you will provide comprehensive and in-depth reporting to enhance the impact of these events.

In addition to building the "Invest in China" brand, we will continue implementing the 24-point guidelines for attracting foreign investment introduced last year. Our efforts will focus on easing access to foreign investment, continuously optimizing the investment environment for foreign businesses, and effectively utilizing the Foreign-Funded Enterprises Roundtable Meetings. We will also maintain the system for gathering and responding to the concerns and needs of foreign-funded enterprises. The Foreign-Funded Enterprises Roundtable Meetings have now been institutionalized, with a monthly schedule in place. These meetings will cover different industries, regions, or countries, totaling 12 sessions. Our aim is to make these roundtable meetings a platform for open and practical communication and exchanges with foreign-funded enterprises.

Yesterday afternoon, I had a discussion with a Japanese business delegation visiting China. They all expressed their hope for a secure and reassuring environment to develop in China. We are also willing to ensure a secure and reassuring environment for all foreign-funded enterprises, including Japanese companies, to develop in China. In other words, we are committed to making efforts to realize the vision put forward by foreign-funded enterprises that the "next China" will still be China. Thank you all.