(Yicai Global) Oct. 12 -- Since the 18th National Congress of the Communist Party of China in 2012, China has demonstrated four key features in its absorption of foreign capital: increased volume, used capital more effectively, made groundbreaking changes in management and enhanced contributions to the national economy, China Securities Journal reported today, quoting Ministry of Commerce spokesman Gao Feng.
Global cross-border direct investment dropped by 2 percent last year, but China managed to attract foreign capital worth USD130.9 billion during the period, up 3 percent on the year to rank top among all developing countries for 25 straight years, the report added. The incoming capital mostly flowed into high-tech firms.
The nation’s foreign capital management system has also undergone fundamental change. Foreign-invested firms falling out of specially managed access range no longer need to obtain approval for incorporation or to change their registration. Instead, they only need to be recorded. This has converted the ‘case-by-case approval’ which was used for more than 30 years, and simplified the incorporation of foreign-backed companies.
In terms of contribution to the national economy, foreign-invested firms, which make up less than 3 percent of all companies across the country, make up nearly half of foreign trade volume and 20 percent of financial revenue.