China expands record of sectors for overseas funding, specializing in manufacturing By Reuters

BEIJING (Reuters) – China’s state planner on Friday issued the 2022 record of sectors for overseas funding, which has been expanded to encourage overseas capital to movement into manufacturing sectors in a bid to enhance industrial and provide chains.

The brand new record, with the variety of industries increasing to 519 from 480 within the final publication of eligible sectors in 2020, got here after President Xi Jinping known as on China to “win the battle” in core applied sciences throughout the lately concluded Communist Celebration Congress.

Nonetheless specializing in manufacturing sectors, the brand new model record stays a “key transfer to stabilise overseas funding below the present state of affairs,” mentioned an announcement by the Nationwide Growth and Reform Fee (NDRC) on Friday.

“It isn’t solely conducive to selling a high-level opening up and accelerating the development of a brand new improvement sample, but additionally to additional stabilising overseas funding, optimising the funding construction and boosting overseas buyers’ expectations and confidence.”

China’s overseas direct funding rose 15.6% from a 12 months earlier within the first 9 months of the 12 months to 1 trillion yuan ($138.12 billion) after 16.4% progress in January-August, the Ministry of Commerce spokesperson advised a information convention on Thursday.

“China’s utilization of overseas capital staged regular progress, but it surely nonetheless faces better exterior strain,” based on the NDRC assertion.

Sectors of air floor assist tools and key elements associated to autonomous driving have been revised or added to the brand new record, after the highly effective planning company mentioned on Tuesday that China will encourage overseas enterprises to spend money on high-tech tools and elements.

Overseas funding shall be additionally inspired in superior manufacturing, power saving and environmental safety sectors in China’s central, western and northeastern areas, based on the NDRC.

Overseas funding of kit manufacturing was supported in Chongqing, Sichuan, Hubei, Hunan and Shaanxi.

With a view to give full play to some great benefits of labour forces, labour-intensive processing commerce industries have been significantly inspired in provinces of Jiangxi, Anhui, Henan, Gansu in addition to areas of Guizhou, Ningxia and Guangxi.

The 2020 record shall be changed by the newly introduced model from January 1, 2023.

($1 = 7.2403 renminbi)