(Yicai Global) Aug. 17 -- China’s foreign direct investment in actual use surged 25.5 percent between January and July from the same period last year, according to the latest figures.

Some CNY672.19 billion (USD103.8 billion) poured into the country in the first seven months, according to data released by the Ministry of Commerce yesterday. This was a 26.1 percent gain from the same period in 2019 and a 3.2 percentage points drop from the January to June period.

"China is still one of the most attractive destinations for foreign capital," Shanghai Securities News reported, citing Cui Fan, professor at the University of International Business and Economics. "The investment relationship between China and members of the Association of South East Asian Nations is becoming increasingly close thanks to member states' comparative edges and the signing last year of the Regional Comprehensive Economic Partnership, the world’s largest trade pact," he added.

The Chinese market has become a key pillar for the global business of many multinational corporations in the European Union, according to the Business Confidence Survey 2021 published by the EU Chamber of Commerce in China in June.

Some 68 percent of the EU firms with a base in China that were surveyed were optimistic about business growth, an increase of 20 percentage points from 2020. And 60 percent said they are considering expanding their business in China, up 8 percentage points from the year before.

Foreign investment in the service sector leapt 29.2 percent year on year to CNY535.6 billion (USD82.6 billion), accounting for 79.7 percent of the total inflow used. Investment in wholesale and retail sales soared by 69.3 percent, that in scientific research and technical services gained by 49.2 percent and that in information technology services 29.1 percent.

The government is formulating more polices to encourage foreign investment, Shanghai Securities News reported. For instance, it is paring back the negative list, which restricts foreign investment in certain sectors, and will release a new edition soon.

China should absorb USD700 billion worth of foreign direct investment between 2021 and 2025, according to goals set by the Ministry of Commerce last month. By 2025, the share of overseas capital in high-tech industries should reach 30 percent, it added.

Editor: Kim Taylor