From January to February this year, the actualized foreign investment in China increased by 37.9% in RMB. These are the main reasons based on our analysis:

First, the fundamentals sustaining China’s positive economic outlook for the long term remain unchanged. Since the beginning of this year, China's economy has continued to recover steadily, production demand has increased rapidly, and consumption has recovered steadily, further enhancing the confidence of foreign investors. The survey reports recently released by the American Chamber of Commerce in China and the German Chamber of Commerce in China show that 83% of American-funded enterprises and 96% of German-funded enterprises continue to be optimistic about the Chinese market, and 66% of American-funded enterprises and 71% of German-funded enterprises plan to increase their investment in China. In the first two months of this year, the actualized investment of the United States and Germany in China increased by 36.4% and 109.1% respectively. Among other major sources of foreign investment, investment from Singapore and the ROK increased by 24.1% and 24% respectively, while investment from BRI countries and ASEAN increased by 27.8% and 25.5% respectively (including investment via free ports).

Second, the effect of the policy on keeping foreign investment stable continues to show. Last year, in response to outstanding concerns of foreign-invested companies, the relevant departments introduced a series of special policies and measures on ensuring the equal participation of domestic and foreign investors in government procurement, supporting foreign R&D centers in enjoying preferential tax policies for the import of scientific and technological innovation, and reducing and exempting personal income tax for foreign individuals, particularly on revising and releasing the new negative list of foreign investment access, and further easing the restrictions on foreign ownership in automobile manufacturing and other sectors, effectively keeping the development expectations of foreign-invested enterprises stable and promoting the strong growth of foreign investment.

Third, China’s business environment has been improving. Since the promulgation of the Foreign Investment Law, we have been reviewing and revising foreign investment laws, regulations, and normative documents. In total, over 200 documents have been formulated or revised, and more than 300 abolished. We continue to strengthen the legal framework for the promotion, protection and administration of foreign investment, implement national treatment for FIEs, and step up protection for the lawful rights and interests of foreign investors. We have also improved service for FIEs. We have optimized the working mechanism for the special task force for key foreign-invested projects and coordinated relevant authorities to enhance service and support, to help address the difficulties encountered by the businesses and facilitate the development of key projects. In January and February this year, the operations of FIEs in China have been stable in general, and paid-in investment in major foreign-invested projects worth over USD100 million increased by 74.3% year-on-year.

China will further expand opening-up on a higher level. We welcome investors from all countries who see China as their next investment destination. We will do more to provide better services for foreign investors and build a business environment that’s based on market principles, governed by law and aligned with international standards. Thank you.