File Photo: VCG

China attracted a total of 1.13 trillion yuan ($158.7 billion) in foreign investment in 2023, dipping by 8 percent year-on-year but still at a very high level, China's Ministry of Commerce (MOFCOM) revealed on Friday. Experts said it shows China still has strong competitiveness in the global investment market.

The data showed that foreign investment in China has hit record levels in recent years. It increased from 941.52 billion yuan in 2019 to over 1.23 trillion yuan in 2022. The scale in 2023 was the third highest in history, despite the 8 percent dip.

MOFCOM spokesperson He Yadong said at a press conference in December 2023 that fluctuations in China's inbound foreign investment had been hyped by the foreign media, but there were various reasons and it should be considered from multiple points of view.

"Given the high base in 2022, it was normal to see a fluctuation in inbound foreign investment in 2023," said He.

According to a report by the United Nations Conference on Trade and Development, global foreign direct investment (FDI) in 2023 rose slightly by 3 percent year-on-year, which was driven by a few European "conduit" economies that often act as intermediaries for FDI destined for other nations.

When these conduit economies are excluded, global FDI flows saw a steep 18 percent decline in 2023, said the report, noting that the rest of the European Union recorded a 23 percent decline, and the US, the world's leading FDI recipient, saw a 3 percent dip.

Among developing economies, the overall FDI in 2023 saw a 9 percent decline, and developing Asian countries saw a 12 percent decrease, read the report.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday that the strong fundamentals of the Chinese economy will not change and China will remain on a positive trajectory over the long run. The great development opportunities and growth potential of the Chinese market are still attracting international enterprises.

"China's high-quality opening-up, improving business environment and mature industrial chains generate promising potential for foreign investors, and China is still one of the most popular investment destinations in the world," Zhou noted.