Chinese commerce regulators will further open the market for foreign investors, as the country has been confronted with challenges in luring foreign investment in recent years.
It's estimate that actual utilized foreign direct investment (FDI) in 2016 was flat year-on-year, Wang Shouwen, vice minister with the Ministry of Commerce (MOFCOM), told a press briefing in Beijing on Friday.
FDI in 2015 grew 6.4 percent year-on-year, but the growth rate in 2016 was less than 1 percent, according to Wang.
He acknowledged that China's attraction for FDI has experienced some headwinds in recent years, such as losing cost advantages to neighboring countries. "Those headwinds have drawn intense attention from the Chinese central government," he said.
Despite the slowdown, there are signs that China's FDI structure has improved. Utilized FDI by the government-encouraged services sector rose 8 percent year-on-year, and it accounted for 70 percent of the total amount during the first 11 months, according to the MOFCOM data.
Still, an expert and a Chinese entrepreneur said that China will continue facing tough competition for foreign investment in 2017, not only from nearby countries but also from developed countries, especially the U.S.
"The investment environments in the U.S. and EU are becoming increasingly attractive for firms, as those countries' governments have been taking steps to lower firms' operation costs," a Chinese businessman surnamed Chang told the Global Times in an earlier interview.
Showing his determination to bring manufacturing back to the U.S., President-elect Donald Trump has called for a 15 percent corporate tax rate, which is lower than the country's current 35 percent and below the OECD average.
In China, ministries in late December jointly worked out measures to boost FDI, said Wang. Those measures, which are set to be announced soon, include the long-awaited seventh revision of the foreign investment guidance catalogue.
China will make it much easier for foreign investors who want to access the services sector, advanced manufacturing and mining, and foreign investors can benefit from the "Made in China 2025" strategy the same as their Chinese peers, according to the measures.
The number of industries restricted to foreign investors will be reduced from 93 to 62, read a statement posted on the website of the National Development and Reform Commission.
China's continued efforts to open up to foreign investment are linked with the country's economic transformation and hurdles faced by the nation's manufacturing sector, Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges, told the Global Times Sunday.
"Apart from further opening up, the Chinese government will make more effort to create a fair and transparent business environment that can make China more competitive," he said.
