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portion of inflow from Hong Kong and Macao is the lists removed limits on foreign ownership in
originated by Chinese companies). passenger-car makers.

How Chinese policymakers plan to The government will also expand the catalogue
promote FDI in 2022? of industries encouraging foreign investment,
leveraging preferential policies on land and
As the COVID-19 pandemic, the volatile political taxation to lure more foreign capital into
environment, and rising input costs continue to advanced manufacturing, modern services, high-
post challenges, the Chinese government has tech sectors, low-carbon and green industries,
pledged to stabilize FDI and foreign trade digital economy, and in the central and
this year. western regions.

At a press briefing held on January 25, Chen China will also promote the RCEP’s entry into
Chunjiang, Director-General of the Commerce force this year, and allow an unprecedented
Ministry’s Department of Foreign Investment level of access to its markets in a bid to join the
Administration, said that China will step up Comprehensive and Progressive Agreement for
efforts to open up its market and optimize Trans-Pacific Partnership (CPTPP).
support measures this year.
Chen also promised that China would further
China will ensure the implementation of optimize its business environment, ensure
the 2021 version of negative lists for foreign effective enforcement of the foreign investment
investment. The national and free trade zone laws and regulations, the establishment of the
(FTZ) negative lists updated in 2021 reduced complaint mechanism for FIEs, the protection
the number of sectors in which foreign investors of intellectual property rights (IPRs), and equal
are restricted or prohibited. Among others, treatment for domestic and foreign companies.

China FDI Y/Y Growth by Region in 2021

China FDI Y/Y Growth by Sector in 2021

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