In the first month of this year, my country's foreign investment absorption and outward investment experienced a rare double decline. However, according to the latest data released by the Ministry of Commerce on March 1, the absorption of foreign investment in high-end manufacturing has increased against the trend. In this regard, Sun Jiwen, spokesperson of the Ministry of Commerce, said at a press conference that day that the changing trend of the investment structure is consistent with the direction of my country's industrial transformation and upgrading. Looking forward to the foreign investment throughout the year, it is expected that my country's foreign direct investment will show a trend of stabilization, slowing down, and improvement.
Data show that in January this year, my country’s actual use of foreign capital amounted to RMB 100 million (USD 100 million), a year-on-year decrease. Outward investment reached 100 million yuan (equivalent to 100 million U.S. dollars), a year-on-year decrease and a slight month-on-month decrease.
Although the total volume has declined, from a structural point of view, whether it is foreign investment or outbound investment, many subdivided areas in the high-end manufacturing and service industries have experienced rapid growth. High-tech manufacturing and high-tech service industries are absorbing foreign investment growth, and the changing trend of investment structure is consistent with the direction of my country's industrial transformation and upgrading.
While the actual use of foreign capital in the manufacturing industry decreased year-on-year, the actual use of foreign capital in the high-tech manufacturing industry increased by RMB 100 million year-on-year. Among them, the actual use of foreign capital in the electronics and communication equipment manufacturing industry, and the computer and office equipment manufacturing industry increased year-on-year.
From the perspective of investment sources, the actual investment amount of Hong Kong, China, Japan, and the European Union increased year-on-year.
In terms of foreign investment, flows to the real estate industry and the culture, sports and entertainment industry decreased year-on-year respectively. At the same time, investment in the real economy and emerging industries received focus. The monthly foreign investment mainly flowed to the manufacturing industry and the information transmission, software and information technology service industries, with year-on-year growth respectively. The proportion of total foreign investment rose from 100 million in the same period of the year to 200 million US dollars flowed to the equipment manufacturing industry, which was 20% of the same period last year. .
In addition, investment in countries along the Belt and Road is active. Non-financial direct investment in countries along the Belt and Road accounts for total foreign investment, and its proportion has increased by 1 percentage point compared with the whole year. Enterprises’ external investment and financing channels also tend to be diversified. The two largest overseas investment and M&A projects in the month were both completed through overseas financing, with a total amount of US$100 million.
Analyzing the reasons for the decline in foreign investment in my country in March this year, Sun Jiwen, spokesperson of the Ministry of Commerce, pointed out that from the statistical data, it was mainly due to the relatively concentrated investment in the same period last year, the base number was high, and at the same time, the Spring Festival holiday in March, etc. factors also have a certain impact. He also said that although the monthly data fluctuates, it does not represent the trend of my country's absorption of foreign investment throughout the year.
Sun Jiwen pointed out that in the medium to long term, my country still has outstanding advantages and conditions for absorbing foreign investment. It is expected that during the 13th Five-Year Plan period, my country's average annual economic growth will remain above 100% and will remain one of the fastest growing markets in the world. As deepening reforms continue to advance, areas of opening up to the outside world continue to expand, the modern market system is improving day by day, the business environment is significantly optimized, and new development momentum and competitive advantages are gradually formed and gradually consolidated, my country will continue to maintain its competitiveness in absorbing foreign investment.
Looking forward to the full year's foreign investment, in 2019, the world economic recovery will be weak. It is expected that my country's foreign direct investment will show a trend of stabilization, slowing down, and improvement. The Ministry of Commerce supports domestic capable and qualified enterprises to carry out genuine and compliant foreign investment activities, participate in the joint construction of the Belt and Road Initiative, carry out international production capacity cooperation, and integrate into the global industrial chain and value chain.
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