Market News International:

What was the status of foreign direct investment in China during the 14th Five-Year Plan period? What are the plans for attracting foreign investment over the next five years? How will China further facilitate foreign investment?

Zheng Shanjie:

I'd like to invite Mr. Zhou to answer your questions.

Zhou Haibing:

Thank you for your questions. Opening up to the outside world is a fundamental national policy of China, and attracting and utilizing foreign investment is an important part of this policy. From 2021 to May this year, foreign direct investment in China totaled 4.7 trillion yuan, exceeding the total amount during the 13th Five-Year Plan period. Foreign-funded enterprises contribute one-third of China's imports and exports, one-fourth of its industrial added value, and one-seventh of its tax revenue while creating more than 30 million jobs. The strong growth of foreign-funded enterprises clearly demonstrates China's market-oriented, law-based and international business environment and strongly validates China's foreign investment policies. This is evident in several ways:

First, companies moving forward with the Chinese market are finding broader opportunities as the negative list continues to shrink. China reduced the negative list for foreign investment access twice, in 2021 and 2024. The current national and pilot free trade zone lists have been reduced to 29 and 27 items, respectively. Restrictions on foreign investment access in the manufacturing sector have been fully eliminated, and the restrictions on foreign investment access in agriculture, services and other sectors have been further eased. Since last year, China has also launched pilot programs to open up the medical care and value-added telecommunications sectors, with multiple foreign-funded enterprises already beginning to invest and operate in these sectors.

Second, China's investment promotion initiatives have generated strong appeal, with ongoing policy incentives continuing to support development. China has revised the Catalogue of Encouraged Foreign Investment Industries multiple times. The current version contains 1,474 items, directing foreign investment toward advanced manufacturing, modern services, high technology, energy conservation and environmental protection. It also encourages investment in the central, western and northeastern regions. Foreign-invested enterprises with projects listed in the encouraged investment catalog can enjoy preferential policies on taxation, land use and other areas in accordance with the law. China provides comprehensive, end-to-end support for major foreign investment projects, coordinating and resolving issues related to land use, marine resources, energy use and other areas. China continues to expand its unilateral, mutual and transit visa exemption policies, making it easier for foreign businesspeople to visit China for inspections and negotiations.

Third, China's business environment is transparent and fair, allowing enterprises of all kinds to fully leverage their strengths. China fully ensures national treatment for foreign-funded enterprises, creating a policy environment with transparent rules and equal opportunities. For example, the new round of large-scale equipment upgrades and consumer goods trade-in programs we are promoting treats domestic and foreign-funded enterprises equally. Another example is China's strengthening of intellectual property protection through amendments to the implementation rules of the Patent Law, the introduction of regulations on fair competition review, and provisions for handling foreign-related intellectual property disputes. The country has continuously stepped up law enforcement efforts against infringements involving foreign-funded enterprises.

Looking ahead, China's policy orientation for attracting and utilizing foreign investment will remain consistent. We will further ease market access requirements and promote the orderly expansion of opening up in relevant fields. We will deliver national treatment at a high standard, ensuring that foreign-funded enterprises have fair access to standard-setting, government procurement, bidding and other activities. We will strengthen service support by continuously implementing targeted initiatives to assist foreign-funded enterprises, actively addressing practical challenges and enhancing enterprise satisfaction and fulfillment.

China has been, is, and will continue to be an ideal, safe and promising investment destination for foreign businesses. We welcome international companies to continue expanding in the Chinese market, share in China's development dividends and achieve greater mutual success. Thank you.