Jiemian:

I'd like to ask a question about how to ensure stable foreign investment. In 2020, utilized foreign investment in China went against the global trend and became the world's top destination for foreign direct investment (FDI). Data shows that China saw faster growth and utilization of FDI in January compared to 2020. Will this trend continue and how does the MOFCOM view this year's foreign investment? In addition, with the global vaccination campaign rolling out and many countries having unveiled their coronavirus relief packages, we can assume that there will be increased competition regarding the utilization of investment. What kind of measures will the MOFCOM take to ensure stable foreign investment? Thanks.  

Wang Wentao:

I will answer this question. Just like you said, last year, China's actually utilized non-financial foreign investment increased by 4.5%, becoming the world's top destination for FDI. This January, the growth is also impressive. But we believe ensuring stable foreign investment this year remains complicated and severe because of ongoing uncertainties. As you mentioned, these uncertainties are arising from the epidemic and economic recovery. On the other hand, competition for investment across the world is increasing. However, we also see some opportunities. For example, the United Nations Conference on Trade and Development (UNCTAD) has projected that we'll see a further 5-10% decrease in FDI in 2021 based on a global decrease of 42% last year. The situation is severe but also provides opportunities. We will act per the policy decisions and plans of the CPC Central Committee and the State Council, and step up efforts to stabilize the total volume of FDI, optimize its structure, and improve the quality regarding FDI utilization. The concrete measures are as follows: 

First, we will continue to open up, which is fundamental. General Secretary Xi Jinping pointed out that China will open its door still wider to the world. As for the MOFCOM, we will continue to lower the entry threshold for FDI as well as implement the 2020 national negative list for foreign investment and the negative lists for foreign investment in pilot free trade zones and ports. We will also employ the new version of the Catalogue of Encouraged Foreign Investment Industries to create more opportunities for investment. The new version has 127 more items. Together we will share the benefits brought by China's reform and development. 

Second, we will make the best use of platforms for opening up. The MOFCOM will step up efforts to build pilot free trade zones and ports and national economic development zones. These are the major platforms and means for attracting foreign investment. We will build high-quality pilot free trade zones and ports and improve the planning of free trade zones, implement the overall plan for building the Hainan Free Trade Port, and carry out policies that support the liberalization and facilitation of trade and investment. China now has 217 national economic development zones. We need to further expand opening-up, push forward the transformation and upgrading of economic development zones, and build new highlands for reform and opening up in a bid to better serve the new paradigm of development. We will also launch further comprehensive trials for opening up the service sector to guide these pilot areas to take bold steps in exploring new ground and methods that are best suited to local conditions.

Third, we will create a better business environment. We all know that with unremitting efforts, China has made a big jump in the World Bank's business environment ranking, reaching No. 31 in 2019. Under the leadership of the CPC Central Committee and the State Council, we will further improve the business environment, better implement the Foreign Investment Law and its relevant regulations, enact, revise, and repeal supporting regulations as necessary, and advance reforms to streamline administration and delegate power, improve regulation, and upgrade services. We will well implement the rules on handling complaints from foreign-invested enterprises, intensify the protection of legitimate rights and interests of foreign businessmen, and continuously promote the marketization, legalization and internationalization of business environment. By doing so, foreign investors will get a better environment, better development and better rewards when doing business in China. Thank you.