Zong Changqing, China’s Director of the Foreign Trade Department of the Ministry of Commerce, recently did an interview regarding the country’s commercial performance. He reveals a few interesting details, including that many foreign companies like SK Hynix, Corning and even Samsung have increased their investments in manufacturing in China, which is a bit of a surprise.
In manufacturing, foreign investment in electrical machinery and equipment manufacturing, and instrumentation manufacturing increased by 41.2% and 48.2%, respectively. According to the First Financial Report, Zong Changqing also stated that Samsung, SK Hynix, Corning Display, Caterpillar, Ineos, Panasonic, Exxon Mobil and other manufacturing giants have increased their investment in China by over $100 million.
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The reason why it’s somewhat surprising is because a lot of companies were pulling out slightly from production in China since the whole Huawei debacle last year. The biggest example of this was Apple opening up new production plants in companies like India and Vietnam. To see the industry regain confidence in manufacturing in China could mean that things between US and China are calming down.
Along with this, in terms of attracting investment structure, China’s service industry will absorb 681.77 billion yuan of foreign capital in 2019, an increase of 12.5%. Foreign investment in information transmission, software and information technology services increased by 29.4%, and foreign investment in the leasing and business services industry increased by 20.6%.
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(Source)
