The Poster News APP:

Recently, MOFCOM and other departments issued an action plan to stabilize and optimize foreign investment utilization. How does MOFCOM assess the current situation regarding attracting foreign investment? What measures will be taken in the second half of the year to foster new strengths in attracting foreign investment? Thank you.

Yan Dong:

I would like to invite Ms. Meng to answer your questions.

Meng Huating:

Thank you for your interest in our work on foreign investment. Since the beginning of this year, in the face of a complex and volatile international environment and sluggish global cross-border investment, the Ministry of Commerce has worked with local authorities and the relevant departments to make solid progress in stabilizing foreign investment. In the first half of the year, actual utilization of foreign capital totaled 402.14 billion yuan, with the decline narrowing by 10.2 percentage points year on year. Both May and June saw positive year-on-year growth, pointing to a steady recovery in foreign investment inflows. I would like to elaborate further on this from two perspectives, namely scale and structure.

In terms of scale, the stock of foreign investment remains stable while new inflows grow. By the end of 2025, the stock of foreign investment in China totaled nearly $4 trillion, a sizeable scale. From January to June this year, the number of newly established foreign-invested enterprises increased by 5.3% year-on-year, with more than 530,000 foreign-invested firms generating approximately 2.5 trillion yuan in tax revenue annually. The World Investment Report released by the UN Trade and Development (UNCTAD) in July suggests that, in spite of a challenging global investment environment, China's foreign investment inflows have shown a sign of stabilization. In general, the underlying trend of stability in China's foreign investment remains unchanged.

In terms of structure, foreign investment is shifting toward high-tech and high-quality growth, undergoing continuous optimization and upgrades. As China's industrial and supply chains become increasingly well-developed and its industrial capabilities continue to rise, multinational corporations are steadily expanding their investments in advanced technologies and cutting-edge sectors. Let me share some figures on foreign investment by sector. In the first half of the year, foreign investment in high-tech industries increased by 33.2%, accounting for 42.4% of the total and reaching a record high; the share of foreign investment in modern service industries reached 57%. Foreign investment in electronic and communication equipment manufacturing grew by 52%, that in technology commercialization services rose by 57.1%, and that in R&D and design services soared by 82%. All these factors provide strong support for industrial upgrading toward smarter, greener, and more integrated development, serving as a vital force in driving high-quality growth. The high-quality nature of foreign investment has become even more evident.

In the second half of the year, we will remain focused on stabilizing and optimizing the utilization of foreign investment, cultivate new competitive edges in attracting foreign investment, and work across the board to expand new inflows, stabilize existing investments, and enhance overall quality.

To expand new inflows, we will advance high-level opening up by steadily and methodically expanding pilot programs in sectors such as value-added telecommunications, biotechnology, wholly foreign-owned hospitals and vocational training institutions. We will support Beijing in upgrading the national comprehensive demonstration zone for greater openness in the service sector, and accelerate the revision and release of regulations on foreign mergers and acquisitions of domestic enterprises. We will continue to build the "Invest in China" brand and launch a series of well-designed investment promotion initiatives. The China International Fair for Investment and Trade (CIFIT), a flagship event under our "Invest in China" brand, will hold its 26th edition this year. We warmly invite multinational corporations to actively participate in the event.

To stabilize existing foreign investment, we will fully implement tax incentives for foreign investors who reinvest profits earned in China. We will also introduce measures to support foreign-invested enterprises in expanding localized production, helping existing foreign businesses to grow and thrive. We will also enhance service delivery by leveraging the role of dedicated task forces for key foreign investment projects across commerce authorities at all levels. This will ensure genuine national treatment for foreign-invested enterprises by dismantling hidden barriers, guaranteeing that foreign firms enjoy seamless access — from initial market entry to full business operations. The Ministry of Commerce holds a roundtable meeting with foreign-invested enterprises every month. Moving forward, we will expand both the scope of topics and the range of participating firms to hear a broader array of feedback and suggestions from foreign businesses.

To improve the quality of foreign investment, we will effectively implement the Catalogue of Industries for Encouraging Foreign Investment. This will guide foreign capital into advanced manufacturing industries -- such as organic polymer materials and high-efficiency energy-saving maglev power equipment -- and modern service industries, including humanoid robotics R&D and high-end maritime services. We will encourage more foreign investment in China's central, western and northeastern regions. We will introduce measures to encourage foreign investment in the service sector, driving its transformation toward integrated, digital and intelligent development. We will promote the specialization and high-end extension of producer services, while boosting the quality and upgrading of consumer services. We will also refine support policies for foreign-invested R&D centers, facilitate the recruitment of more high-caliber foreign talent, and step up support for the commercialization of innovation, thereby injecting new momentum into high-quality economic development. Thank you.