Economy

China expands the list of sectors available for foreign investment. China’s focus is on manufacturing


© Stocksak. FILEPHOTO: People stroll in a park close to Beijing’s central business district, China, August 29, 2017. Picture taken August 29, 2017. REUTERS/Jason Lee

BEIJING (Stocksak), China’s state planner has released the 2022 list sectors for foreign investment. This was done to encourage foreign capital to flow to manufacturing sectors to improve industrial and supply chain efficiency.

The new list includes 519 more industries than the 480 that were published in 2020. It was created after President Xi Jinping urged China “win the war” in core technology during the recently concluded Communist Party Congress.

According to a statement issued by the National Development and Reform Commission on Friday, the new version list will still be a key move to stabilize foreign investments under the current situation.

“It is not only conducive towards promoting high-level opening up, accelerating the construction a new development pattern but also to further stabilising and optimising foreign investment and boosting foreign investor’s expectations and confidence.”

China’s foreign direct investments increased 15.6% compared to one year earlier in the first nine month of the year ($138.12 billion), after 16.4% growth between January and August, the spokesperson for the Ministry of Commerce stated at a news conference.

According to the NDRC statement, “China’s use of foreign capital made steady progress, but it still faces greater pressure from the outside.”

After China’s powerful planning authority said Tuesday that China would encourage foreign companies to invest high-tech equipment and parts, sectors of air ground assistance equipment and key components related with autonomous driving were updated or added to the new list.

According to the NDRC, foreign investment will also be encouraged in advanced manufacturing, energy savings, and environmental protection sectors in China’s central and western regions.

Chongqing, Sichuan Hubei, Hunan, Shaanxi supported foreign investment in equipment manufacturing.

To fully exploit the benefits of labour forces, the promotion of labour-intensive processing trade industries was especially encouraged in Jiangxi and Anhui, Gansu, Gansu, Henan, Gansu, Gansu, as well as regions Guizhou, Ningxia, Guangxi.

The 2020 list will soon be replaced by the new version announced on January 1, 2023.

($1 = 7.2403 renminbi)

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