Chinese Government Implementing Measures to Attract FDI

On November 16, a spokesperson for China's National Development and Reform Commission announced plans to increase the attraction of foreign investment and enhance consumption among low and mid-level income groups. The second-largest economy in the world has faced challenges in achieving a robust recovery post-COVID. Issues such as difficulties in the housing market, risks associated with local government debt, sluggish global economic growth, and tensions on the geopolitical front have all contributed to a decline in consumer and investor confidence.

Li Chao stated that they plan to introduce more robust foreign investment policies to attract much-needed fresh capital. He also mentioned that the powerful government body will continue to expand domestic demand.

A flurry of policy support measures since June has proven only modestly beneficial, raising pressure on the authorities to roll out more stimulus.

"We will accelerate the implementation of projects enabling the issue of an additional 1 trillion yuan of government bonds," Li said while stressing the importance of coordinating macro-economic policies between this year and next to ensure the economy got off to a good start in 2024.

The state planner also said it approved 130 fixed-asset investment projects worth a total of 1.08 trillion yuan ($148.8 billion) during the January to October period, four of which were approved last month and were worth 5.6 billion yuan.