Vehicles run at the Central Business District (CBD) in Chaoyang District in Beijing, capital of China, June 6, 2022. [Photo/Xinhua]

China is expected to see rising foreign capital inflows in 2023, as the annual Central Economic Work Conference recently reaffirmed the country's commitment to high-level opening-up and introduced a series of incentives.

The conference, held in Beijing from Dec. 15-16, emphasized the need to attract and utilize foreign capital, widen market access, promote the opening-up of the modern service sector, and grant foreign-funded enterprises national treatment.

Zhang Wei, deputy head of the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce, noted that the meeting emphasized greater efforts to attract foreign capital, with the goal of better playing the unique linkage role of domestic and international markets.

Creating better development conditions for foreign capital will allow foreign investors to participate in China's economic circulation in greater depth, she added.

"The measures introduced by the meeting have not only identified the priorities of the current work of attracting foreign capital, but can also help promote a higher level of opening-up, which will further boost the confidence of foreign-funded enterprises to pursue long-term development in China," Zhang said.

"With multiple favorable policies, it is expected that foreign investment will sustain a good momentum next year, and that foreign capital stock will be stabilized and expanded with its quality improved," she said.

The latest data released by the Ministry of Commerce showed that China's foreign direct investment (FDI) in the first 11 months of the year rose 9.9% from a year earlier to 1.16 trillion yuan. In U.S. dollar terms, the inflow was up 12.2% year on year at $178 billion.

The number of foreign-funded enterprises in China increased by 51.5% to 668,000 by August this year from 441,000 at the end of 2012, data from the State Administration for Market Regulation showed.

According to a survey conducted by the China Council for the Promotion of International Trade (CCPIT) of more than 160 foreign-funded enterprises and foreign chambers of commerce, 99.4% of the surveyed enterprises were confident about China's economic development in 2023 and would continue investing and sharing the benefits of China's growth. Moreover, 98.7% intend to maintain and expand their investments in China, 89.8% aim to retain their industrial chains in China, and 10.2% plan to transfer their overseas industrial chains to China.

CCPIT spokesperson Yang Fan said, "the surveyed foreign-funded enterprises generally believe that China has strong economic resilience and comprehensive competitive advantages in terms of market potential, industrial system, infrastructure, and business environment, and they have a positive outlook on the potential of China's economic development."

In analyzing China's 2023 outlook, Zhang Wei said as the country sees overall economic recovery and deepening reform and opening-up, the Chinese market will become more attractive.

The country's steady progress in institutional openness and the improvement of its foreign capital management will provide a more conducive environment for foreign investment, she added.

Long Guoqiang, deputy head of the Development Research Center of the State Council, remarked at the 2022-2023 Annual Economic Conference that increased efforts to attract and utilize foreign capital will help promote China's high-quality economic development, better meet the demands for upgrading consumption, promote the stability of the industrial and supply chains, and play an increasingly significant role in China's modernization.

Long noted that China cannot develop in isolation from the rest of the world, nor can the world enjoy prosperity without China.

China steadfastly pursues a mutually beneficial opening-up strategy, and its door will open wider to the world so that investors from various countries can better enjoy its development opportunities, he added.

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