CCTV News: On February 20, the State Council Information Office held a regular briefing on the State Council’s policies.
At the press conference, a reporter asked, "I have two questions. First, how can China encourage foreign investment?" At the same time, it targeted some big-name foreign companies, especially American companies like Google and Apple. The second question is that many multinational companies have begun to transfer their industrial chains and their technology and business in China. How should China respond?
Zhu Bing, Director of the Foreign Investment Management Department of the Ministry of Commerce, responded, the first question is the investigation of multinational enterprises just mentioned. I would like to reiterate that the Chinese government welcomes foreign enterprises to invest and operate in my country and will also protect their legitimate rights and interests in accordance with the law. China investigates and punishes illegal enterprises and individuals in accordance with our country's laws. Foreign entities that are honest and law-abiding do not need to worry. The Chinese government has also welcomed companies from all over the world to invest and start businesses in China, and is committed to providing a stable, fair and predictable business environment for legal and compliance foreign-funded enterprises to operate in China.
The second question is that regarding the transfer of multinational corporations, China is the second largest consumer market in the world, and the market size is still expanding steadily, consumption is also continuing to upgrade, and the update and iteration of products and services is very fast. It is very common for various business entities, including foreign-funded enterprises to adjust their investment layout based on the Chinese market situation, their own business development strategies and the comparative advantages of various countries. It is also a normal phenomenon of the market economy. Overall, the Chinese market has maintained a relatively strong attraction to foreign capital. According to our statistics, as of the end of 2023, the number of foreign-invested enterprises in China was 465,000, an increase of 46,000 from 2019 before the epidemic. In 2024, my country established 59,000 new foreign-invested enterprises, an increase of 9.9% year-on-year. It can be seen that although multinational companies have both in and out, the overall number of foreign companies investing in China is still increasing.
The reports released by many foreign chambers of commerce also confirm this. These reports generally show that most foreign-invested enterprises in China are profitable and are optimistic about our development environment in the long run. Therefore, we believe that under this current state, our business environment is also continuing to improve. We also welcome investors from all countries to continue to increase their investment in China, bring more competitive new products and new services, actively participate in the construction of our new development pattern, and share China's development opportunities.
