China boasts favorable conditions to attract foreign investment, says official

A Chinese official has dismissed concerns about the withdrawal of foreign capital from China, stressing that the country has multiple favorable conditions to attract foreign investment.

The official of the Office of the Central Committee for Financial and Economic Affairs said there are enormous opportunities for global businesses in the country's super-large market, complete industrial system, and new development pattern.

China's per capita GDP has exceeded $12,000 and its middle-income group has surpassed 400 million people, forming a vast domestic market with huge potential, the official said. China is the only country that has all the industrial categories listed by the United Nations and its industrial advantages are unmatched by other countries, according to the official.

The remarks came as the country held its annual Central Economic Work Conference days ago to decide priorities for the economic work in 2024. The Chinese leadership pledged to expand high-standard opening up at the conference.

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Responding to media reports on China's foreign direct investment, the official said despite a slip in the first ten months, the investment volume remains at a high level and foreign funds going to services and high-tech manufacturing have registered more rapid growth.

The official attributed the recent volatility in investment data to a drastically changing external environment with rising geopolitical risks, misunderstanding of China's real conditions due to pandemic-disrupted communications, and the normal transfer of some labor-intensive industries amid shifting comparative advantages.

Looking ahead, China will steadily promote institutional opening up, cancel all foreign investment restrictions in the manufacturing sector, expand opening up in telecommunication and medical services, and resolve issues such as cross-border data flow and equal participation in government procurement, according to the official.

Efforts will also be made to make it easier for foreigners to do business, study and travel in China, the official said.

(Cover: This aerial photo taken on September 19, 2023 shows the Starbucks China Coffee Innovation Park in Kunshan, east China's Jiangsu Province. /Xinhua)