Despite US Pressure... Foreign Direct Investment in China Increased by 16%

Chinese State Media: "Momentum for Investment in China Unchanged Despite US Administration's Foreign Policy"
"Backed by China's Long-Term Development Potential and Strong Supply Chain"

[Image source=Yonhap News]

[Asia Economy Beijing=Correspondent Kim Hyunjung] Despite U.S. pressure on China, including tariff measures and penalties on new technology investments, allied countries including South Korea have increased their investments in China.

According to China's Ministry of Commerce on the 20th, China's foreign direct investment (FDI) from January to August this year reached 892.74 billion yuan (approximately 177.0392 trillion KRW), marking a 16.4% increase compared to the previous year. However, this growth rate is somewhat slower compared to the 22.3% increase during the same period last year.

By industry, investment in the service sector increased by 8.7% year-on-year to 662.13 billion yuan, accounting for the largest share. Additionally, the advanced industries sector rose by 33.6%, with manufacturing and service sectors within it increasing by 43.1% and 31%, respectively.

By country, South Korea showed the steepest increase in investment at 58.9%, followed by Germany (30.3%), Japan (26.8%), and the United Kingdom (17.2%). Regionally within China, foreign investment in the eastern region increased by 14.3%, while the central and western regions recorded growth rates of 27.6% and 43%, respectively.

The Ministry of Commerce stated, "Despite domestic and international pressures, global companies positively evaluate the Chinese market due to measures stabilizing foreign investment such as attracting foreign capital to China's vast market and expanding openness," and predicted, "China's absorption of foreign investment will continue steadily in the future."

Major Chinese media also reported that Western forecasts of rapid capital outflows from China due to comprehensive U.S. pressure on China have proven to be mere rumors. The Chinese state-run English newspaper Global Times (GT) cited Chen Jia, a researcher at the International Strategy Institute, who analyzed, "The reason for the increase in multinational companies' investments in China is resilience," adding, "It is based on recognition of China's long-term development potential and strong supply chains." Furthermore, "This momentum will not be altered by the U.S. administration's foreign policy," he added.

This content was produced with the assistance of AI translation services.