Although the global supply chain has entered a new round of reconstruction, China is still a key investment destination for multinational corporations around the world.
A report was released by the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce at the third Qingdao Multinationals Summit in the coastal city of Qingdao, East China’s Shandong province on June 19. It states that the majority of international manufacturers in China continue to view China as a significant investment destination, and investment confidence is consistently improving.
Despite a decline in foreign investment in the manufacturing sector in recent years, China has constantly attracted multinationals’ investments in the manufacturing sector due to its enormous market and comprehensive supply chain.
China’s manufacturing foreign direct investment (FDI) inflows remained stable from 2017 to 2021, while the cross-border investment in the manufacturing industry worldwide suffered turbulence of decrease.
China’s manufacturing sector used $33.73 billion of foreign investment in 2021, up 8.8 percent year-on-year. The growth was 1.1 percentage points higher than that for the global manufacturing sector.
China’s high-tech manufacturing sector actually used $12.06 billion of foreign investment in 2021, up from $9.89 billion in 2017. Its proportion in the whole manufacturing sector rose by 6.3 percentage points to 35.8 percent, according to the report.
Over the past few years, multinational manufacturing firms have increased the value of their investments in China.
