MOFCOM Department of Foreign Investment Administration Comments on China’s Absorption of Foreign Investment in January-July 2019
Date: 2019-8-16

China’s absorption of foreign investment in January-July 2019 mainly showed the following features:

1. The actual use of foreign capital maintained a stable growth.

In January-July, 24,050 foreign invested companies were newly established; the actual use of foreign capital reached 533.14 billion yuan, increasing by 7.3% year on year (equivalent to US$78.8 billion, up 3.6% year on year).

In July, the actual use of foreign capital reached 54.82 billion yuan, increasing by 8.7% year on year (equivalent to US$8.07 billion, up 4.1% year on year).

2. The absorption of foreign investment of high-tech manufacturing industry and high-tech service industry both showed high-speed growth.

In January-July, the actually utilized foreign capital of manufacturing industry reached 154.8 billion yuan, up 2.7% year on year, and that of service industry reached 371.57 billion yuan, up 9.3% year on year. The actually utilized foreign capital of the hi-tech industry increased by 43.1% year on year, taking up 29.3% of the total amount. The actually utilized foreign capital of the high-tech manufacturing industry was 59 billion yuan, up 19% year on year. Among these, the actual use of foreign capital in aviation, spacecraft and equipment manufacturing, electronic and communication device manufacturing, and pharmaceutical industry increased by 32.8%, 29.3% and 22% respectively year on year. The actually utilized foreign capital in hi-tech service sector reached 97.39 billion yuan, up 63.2% year on year. Among these, those in inspection and testing services, R&D and design and scientific achievement transformation service increased by 98.2%, 70% and 81% respectively year on year.

3. The capital use in the eastern and central region and the pilot free trade zones registered common growth.

The actually utilized foreign capital in the eastern region was 457.11 billion yuan, up 6.3% year on year; that in the central region was 36.09 billion yuan, up 3.5% year on year; that in the western region was 39.94 billion yuan, up 25.2% year on year; and that in the pilot free trade zones was 75.47 billion yuan, up 14.6% year on year, taking up 14.2%.

4. Main investment source countries kept the trend of growth

Among the main investment sources, the actual input value from Germany, South Korea, Japan and Netherlands increased by 72.4%, 69.7%, 12.6% and 14.3% respectively year on year. The actual investment amount from the EU increased by 18.3% year on year, and that from the countries along the Belt and Road routes increased by 5% (including the investment from the free ports).

Chinese and US Chief Trade Negotiators for High-level Trade Consultation Hold Telephone Conversation
On August 13, member of the Political Bureau of the Central Committee of the CPC, Vice Premier of the State Council and chief of the Chinese side of the China-US comprehensive economic dialogue Liu He held a telephone conversation with the US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. China made solemn representations regarding the US’ plan to increase tariffs on Chinese export to the US. They agreed to make another conversation in the coming two weeks. Minister of Commerce Zhong Shan, head of the People's Bank of China Yi Gang and deputy head of National Development and Reform Commission Ning Jizhe joined the conversation.

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