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The White Paper for Foreign Investment Environment

January 02 2019

In 2017, the actual use of foreign capital in various industries in the country reached US$136.32 billion, a year-on-year increase of 2%. Among them, the actual use of foreign capital in the non-financial sector was US$131.04 billion, ranking second in the world, and further improving the quality and level,play an important role for the national economy and social development.

In 2017, 35,652 new Foreign-funded Enterprises were established nationwide, a substantial increase of 27.8% year-on-year, an increase of 22.8 percentage points over the previous year. In the past five years, the number of new non-financial Foreign-funded Enterprises in China has increased year by year. From 2013 to 2017, the number of new enterprises was 22,773, 23,778, 26,575, 27,900 and 35,652 respectively.

Among them, in 2017, 4,986 new Foreign-funded Enterprises were established in the manufacturing industry, up 24.3% year-on-year; the actual use of foreign capital was US$33.51 billion, down 5.6% year-on-year, accounting for 25.8% of the national total. Among them, computer, communications and other electronic equipment manufacturing industry actually used foreign capital of 5.9 billion US dollars, an increase of 2.6%; electrical machinery and equipment manufacturing industry actually used foreign capital of 3.05 billion US dollars, an increase of 1.2%; general equipment manufacturing industry actually used foreign capital 2.89 billion US dollars. fell by 0.6% year-on-year. The above three industries accounted for 35.4% of the total foreign direct investment in the manufacturing industry.

5,990 new Foreign-funded Enterprises in the high-tech service sector, up 81.9% year-on-year, actual use of foreign capital 260.7 billion dollars, an increase of 106.4%. Information services added 3,392 new enterprises, up 102.6% year-on-year, and actual use of foreign capital was US$20.97 billion, up 146.5% year-on-year. There were 32 new enterprises in e-commerce services, and the actual use of foreign capital was US$170 million, up 88.8% year-on-year. The actual use of foreign investment in R&D and design services was US$ 1.45 billion, up 3.2% year-on-year.

In 2017, there were 1032 new Foreign-funded Enterprises in China's high-tech manufacturing sector, up 29.3% year-on-year, and actual use of foreign capital was US$9.89 billion, up 7.6% year-on-year. The actual use of foreign capital in the six branches of high-tech manufacturing increased year-on-year. Among them, the electronics and communication equipment manufacturing industry accounted for the largest foreign investment in high-tech manufacturing, accounting for 64.7%, reaching US$6.4 billion, up 4.5% year-on-year; Pharmaceutical Manufacturing Industry utilized foreign capital of 2.14 billion US dollars, up 1.8% year-on-year; medical equipment and instrumentation manufacturing industry utilized foreign capital of 870 million US dollars, up 23.1% year-on-year; computer and office equipment manufacturing industry utilized foreign investment of 370 million US dollars, up 65.7% year-on-year; aviation, spacecraft and equipment manufacturing industry experienced the fastest year-on-year growth, with foreign investment of US$80 million, up 110.2% year-on-year; information chemical manufacturing industry utilized US$0.4 billion, up 737.4% year-on-year, the largest increase.

In 2017, the Chinese government substantially relaxed foreign investment access, increased the protection of foreign rights, improved the investment business environment, and encouraged foreign investors to continue to invest in China for a long time. The scale of foreign capital utilization was steadily increasing, and the quality and level were steadily improved.