The steady growth of foreign investment and foreign trade highlights China’s advantages in governance

2022-07-19 0 By

According to data released by the Ministry of Commerce, the amount of foreign capital actually used in China in January 2022 was 102.28 billion yuan, up 11.6% year on year.Leading indicators and high-frequency data such as the composite export container freight rate index and the new export order index also show that this year’s foreign trade started well.Despite the sluggish recovery of the world economy, China’s foreign investment and foreign trade continued to grow steadily, fully demonstrating the strength of China’s economic governance model.Expand system – type opening to lay the foundation for export-oriented economic growth.In recent years, in the face of complex domestic and international situations, China has resolutely expanded its opening-up at a higher level and accelerated the shift from opening up based on the flow of goods and factors of production to opening up based on rules and other institutions, thus providing institutional support for high-quality development.On the one hand, we will actively align ourselves with high-standard international market rules, strengthen free trade zones, and continue to improve the business environment.Since September 2013, the first pilot free trade zone was put into operation in Shanghai, and China has successively approved the construction of 21 pilot free trade zones in Guangdong, Liaoning and Hainan.With institutional innovation as its core, the FREE trade Area has played an important exemplary and leading role in removing institutional barriers hindering opening-up.On the other hand, we will expand market access for foreign investment and optimize the distribution of investment.Starting from January 1, 2022, the new negative list for foreign investment in the national and pilot Free Trade zones will be officially implemented. The list will further reduce the number of items on the list, further open up the financial and automobile sectors in an orderly manner, and ensure that foreign investment is allowed to enter when it is not prohibited.At the same time, we will actively revise and expand the Catalogue of Industries to Encourage Foreign Investment, so as to guide the distribution of foreign investment and encourage more investment in emerging areas such as advanced manufacturing, green, low-carbon, digital economy and the central and western regions.The new pattern of dual-cycle development has injected new impetus into export-oriented development.To realize the “major domestic cycle”, we need to fully tap the potential of China’s domestic demand and build a more dynamic domestic market.Therefore, expanding imports of high-quality products and services from other countries will help enrich domestic consumption choices, optimize the consumption mix and promote consumption upgrading, further leverage the fundamental role of domestic consumption in driving economic development, and thus enhance the resilience of The Chinese economy against external pressures.On the other hand, the “domestic and international double cycle” means that China will make full use of both domestic and international markets and resources to promote the coordinated development of domestic demand and external demand, import and export, foreign investment and foreign investment.In this process, China will actively align with international rules and use international capital and advanced technology to promote industrial upgrading, so as to form a more innovative, higher value-added, safer and more reliable industrial chain and supply chain in the process of participating in the international division of labor, thus helping to realize China’s position in the global industrial chain.This “two-way” driven development strategy also provides unprecedented development opportunities for global market players, including Chinese enterprises.Solid regional partnerships lead the way for outward expansion.In the face of rising unilateralism and trade protectionism, China firmly supports the multilateral trading system and takes an active part in multilateral and regional economic and trade cooperation. This has not only boosted confidence in cooperation, but also boosted the recovery and development of its partners.First, the high-quality development of the Belt and Road has built a platform for deepening international trade and investment cooperation, effectively driving the steady growth of regional international trade and deepening investment cooperation between China and countries along the Belt and Road.In January 2022, real investment from belt and Road countries to China increased by 28.4 percent year-on-year.Second, the formal implementation of the Regional Comprehensive Economic Partnership (RCEP) has boosted regional economic and trade cooperation.On January 1, 2021, the Regional Comprehensive Economic Partnership (RCEP) was the first to enter into force in 10 countries. Within a month of its implementation, the RCEP has given a strong boost to China’s foreign trade.For example, as of January 31, Shanghai Customs has accepted 273 import preferential declaration forms, with a value of 280 million yuan and a tariff concession of 4.895 million yuan.Fuzhou Customs has issued 307 RCEP certificates of origin, and 109 million yuan of exported goods will enjoy tariff preference in foreign countries.The good start of foreign trade fully shows that China’s measures to stabilize foreign investment and foreign trade have been active and effective since the outbreak, and government departments at all levels have cooperated smoothly and efficiently.For this reason, we have reason to believe that the Chinese government can further stabilize the foreign trade and investment base, and thus continue to drive strong growth of the overall economy.