China reaffirms commitment to foreign investment amid declining inflows

BEIJING – In light of the recent reports highlighting a 9.4% fall in foreign investments into China this year, officials from the world’s second-largest economy are reinforcing their commitment to creating a more favorable environment for international investors. Mao Ning, spokesperson for China’s Foreign Ministry, emphasized the country’s enduring role as a leading engine of global growth and a top investment destination during a press briefing on Tuesday.

Despite the downturn in foreign capital inflow, China is doubling down on promises made by President Xi Jinping at the APEC CEO summit to improve conditions for overseas businesses. The nation is looking to enhance national treatment for foreign investors, which ensures that they receive the same favorable conditions as domestic firms.

In addition to reinforcing investor rights and interests, China is set to continue its policy of opening up its economy. This includes reducing barriers by shrinking the negative list for foreign investments—a tool that restricts foreign access to certain industries. The move is aimed at encouraging more international business engagement and reinvigorating interest from global investors.

These measures come at a time when China is experiencing shifts in its industrial chains and challenges to maintaining its status as an attractive investment hub. However, the government remains steadfast in its approach to attract foreign direct investment by providing a more transparent and equitable business landscape.

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