Foreign direct investment (FDI) into the Chinese mainland surged 8.4 percent year on year in the second quarter, compared with a 10.8 percent plunge in the first quarter, testifying to a steady recovery of investor confidence after the coronavirus shock, data from the Ministry of Commerce (MOFCOM) showed Thursday.
For June alone, the FDI inflow stood at 117 billion yuan (16.72 billion U.S. dollars), an increase of 7.1 percent year on year.
In the first half of the year, the FDI inflow totaled 472.2 billion yuan, down 1.3 percent year on year, narrowing 9.5 percentage points compared with the first quarter, said MOFCOM.
Non-financial outbound direct investment (ODI) in 159 countries and regions totaled 362.14 billion yuan, down 0.7 percent year on year. Investments into the Belt and Road countries witnessed rapid growth, totaling 8.1 billion U.S. dollars, up 19.4 percent year on year.
Investments from Hong Kong, Singapore and the United States increased by 4.2 percent, 7.8 percent and 6 percent year on year, respectively, in the first half of the year.
Overseas investment in high-tech service industries surged 19.2 percent during the January-June period. Among them, research and development and design services increased by 35.7 percent, information services by 20.9 percent and inspection and testing services by 8.7 percent year on year.
A string of policies to be rolled out
The commerce ministry also said it will continue to launch a series of policies for stabilizing trade and investment.
The local governments are encouraged to introduce new measures based on local conditions, paying attention to the obstacles facing foreign trade businesses, including tepid global demand, rising costs and worker and logistics issues, said MOFOCM spokesperson Gao Feng.
Measures including export rebates, export credit insurance and online services should continue to ease the pressure on foreign trade enterprises, especially small- and medium-sized enterprises, said Gao.
Responding to UK's ban on Huawei
The ministry also responded to the UK government's decision to ban Huawei's equipment from the country's 5G network.
Gao said China strongly opposes this move as the UK's discriminatory actions go against the rules of free trade which the UK aspires to uphold.
The UK's actions have also severely violated the rules of the WTO, and weakened China's confidence in investing in the country, said Gao.
Gao added that China is evaluating the UK's move and will take necessary measures to protect Chinese enterprises' rights and interests.
(CGTN's Wang Hui also contributed to the story)
(Cover: Cargo ships berthed at a wharf at Wenfeng port in the China (Hebei) Pilot Free Trade Zone Caofeidian area in north China's Hebei Province, August 27, 2019. /Xinhua)