China’s Ministry of Commerce (MOFCOM) said overseas companies are showing more confidence in investing in the country, with foreign direct investment (FDI) in particular hitting a record high in 2018.
In a year when overseas markets pose concerns for the global economy, many of them still continue to invest in China. MOFCOM said FDI in China rose three percent in 2018, to $134.97 billion. December alone saw a 23.2 percent jump of nearly $14 billion.
Investment in China’s manufacturing industry contributed over 30 percent to the total FDI. And investment in high-tech areas saw particularly fast growth: 35 percent year-on-year.
“International capitals speak highly about China’s high-quality development. As Chinese people are pursuing higher-quality lives, the country’s economic structure will head toward high-end products. So, I think foreign investors will invest in and benefit from this huge and strong market,” said Tang Wenhong, a senior official with MOFCOM.
Monday’s data showed investment from the US and the European Union went up by 7.7 percent and 23 percent, respectively, and the FDI from countries along the Belt and Road routes surged 13 percent.
The country saw nearly 1,700 major FDI projects with contract value above $50 million, up 23.3 percent from the previous year. Beijing said this figure signals a bumper harvest in FDI for the next year.
“Investment in big projects saw a 23 percent growth, which is a leading indicator and a good sign. It also shows that foreign investors are fully confident about the Chinese market,” said Tang.