On August 12, the Ministry of Commerce released the statistics that, from January to July, a total of 15,802 foreign-invested enterprises were established nationwide, up 9.7% year-on-year, and there are a great number of large enterprises newly established and those with capital increase. The foreign investment in actual use of China reached RMB491.51 billion, up 4.3% year-on-year; the foreign investment attracted by high-tech service industry had a year-on-year increase of 98.2%.

 

Official in charge of the Department of Foreign Investment Administration of the Ministry of Commerce said that, since the beginning of this year, China has been maintaining an increase of attracted foreign investment, and both the foreign investment attracted by the high-tech service industry and that by the high-tech manufacturing industry has realized an increase. From January to July, the foreign investment in actual use of the high-tech manufacturing industry reached RMB34.52 billion, up 1.5% year-on-year, and the pharmaceutical industry as well as medical instrument, equipment and meter manufacturing industry had a big increase, respectively up 91.4% and 80.5% year-on-year.

 

During the same period, the foreign investment in actual use of the service industry reached RMB344.31 billion, up 7.7% year-on-year, accounting for 70.1% of the national total, and that of the high-tech service industry reached RMB60.18 billion, up 98.2% year-on-year. In the high-tech service industry, the foreign investment in actual use of the IT service, digital content and related service as well as R&D and design service industries had a big increase, respectively up 303.5%, 57.7% and 37.5% year-on-year.

 

In terms of source of investment, from January to July, the investment from the United States, the UK and Germany respectively had an increase of 129.8%, 96.8% and 96.6%, with faster increase seen in the information transmission, computer service and software, scientific research, technical service, geological prospecting and manufacturing industries. The total investment actually made by 28 EU countries reached RMB37.8 billion, up 35.6% year-on-year.

 

The western part of China is more attractive to foreign investment. From January to July, the foreign investment in actual use in western China reached RMB36.5 billion, up 31% year-on-year; that in eastern China reached RMB428.83 billion, up 6.6% year-on-year; however, that in the central part of China reached RMB26.18 billion, down 36.1% year-on-year.

 

It is noteworthy that the upsurge of merger and acquisition is continuing. It was said that the foreign investment in actual use in the form of merger and acquisition continues to have an increase. Relevant data show that, from January to July, 795 foreign-invested enterprises were established through merger and acquisition, with RMB100.57 billion of foreign investment in actual use, respectively up 4.1% and 17.8%, accounting for 5% and 20.5% of corresponding totals.

 

Data of the Ministry of Commerce also reveal that, from January to July, there were 443 newly established large foreign-invested enterprises each with total investment of more than USD100 million and 255 enterprises each with capital increase of more than USD100 million. Of these large enterprises mentioned above, some are engaged in research and development and manufacturing of new materials, new energy vehicles and batteries, aircraft parts, medical instruments, integrated circuits and chips, while some are engaged in services related to medical treatment, elderly care, e-business, Cloud computing, biofuel research and development as well as research and development and application of Internet of Things.

 

Source: Translated from Invest Guangzhou, August 13, 2016