Core Viewpoint - China's foreign direct investment (FDI) landscape has experienced significant fluctuations in recent years, particularly since 2022, with a notable shift from net inflows to net outflows, raising concerns about "de-Chinaization" in global supply chains. However, preliminary data from the State Administration of Foreign Exchange indicates a reversal in this trend in 2023, with net outflows decreasing and net inflows returning, despite ongoing external pressures [3][5][15]. Group 1: Trends in Cross-Border Direct Investment - Historically, China has been a major recipient of foreign investment, with a shift towards balancing inbound and outbound investments since the early 2000s. Prior to 2022, China consistently recorded a surplus in cross-border direct investment, contributing to the resilience of its international balance of payments [4][5]. - The COVID-19 pandemic initially boosted China's direct investment surplus in 2020 and 2021, with surpluses reaching $165.3 billion in 2021, the highest since 2014. However, this trend reversed in 2022, leading to significant net outflows in subsequent years [5][6][10]. - From 2021 to 2024, China's cross-border direct investment shifted from a surplus to a deficit, with a total increase in net outflows of $319 billion. This was primarily driven by a sharp decline in net inflows of foreign direct investment [6][10]. Group 2: Factors Influencing Investment Flows - The decline in foreign direct investment inflows from 2021 to 2024 was largely due to a significant drop in equity investment inflows and a reversal in inter-company debt flows. Equity investment inflows decreased from $300.6 billion to $72.8 billion, contributing 70% to the overall decline in foreign direct investment inflows [8][10]. - The net outflow of equity investment remained stable, while inter-company debt flows saw a significant reversal, indicating a complex interplay of factors affecting cross-border investment dynamics [14][25]. - In 2023, net outflows of cross-border direct investment decreased by 50.8% year-on-year, primarily due to increased net inflows of foreign direct investment and reduced net outflows of direct investment [15][19]. Group 3: Government Response and Market Outlook - The Chinese government has recognized the need to mitigate external shocks and has implemented measures to enhance foreign investment, including easing restrictions and optimizing the business environment [15][16]. - Despite external pressures, key economic indicators have shown resilience, with foreign direct investment net inflows increasing in 2023, reflecting a stabilization in foreign capital withdrawal [21][24]. - The overall investment climate remains cautious, with domestic enterprises adopting a rational approach to overseas investments amid geopolitical tensions and economic challenges [26][27].

Core Viewpoint - The Ministry of Commerce emphasizes the importance of maintaining global supply chain stability and security, while actively promoting compliance in export approvals, particularly for rare earths to the EU [2]. Group 1: Foreign Direct Investment - In the first five months of this year, China's non-financial direct investment abroad reached $61.6 billion, a year-on-year increase of 2.3% [3]. - Investment in countries participating in the Belt and Road Initiative amounted to $15.52 billion, reflecting a significant growth of 20.8% [3]. - The total revenue from foreign contracted projects was $61.94 billion, up by 5.4%, with new contracts signed totaling $98.68 billion, an increase of 13% [3]. Group 2: Foreign Investment Policies - The Ministry of Commerce plans to enhance the investment environment for foreign enterprises by addressing their concerns and improving investment policies [4]. - The implementation of the "2025 Action Plan for Stabilizing Foreign Investment" will continue, with a focus on expanding open sectors, including education and healthcare [4]. - The "Invest in China" brand will be further promoted through various activities, with 19 key events held in the first half of the year to showcase China's investment advantages [4]. Group 3: Integration of Domestic and Foreign Trade - The Ministry of Commerce aims to implement an action plan to double the number of integrated domestic and foreign trade enterprises, fostering leading companies in this sector [5][9]. - A series of over 330 "Chinese Quality Products" events will be organized to enhance the level of these activities [7]. - Policies supporting enterprises will be strengthened, focusing on financial, insurance, and fiscal measures to alleviate costs for struggling businesses [8].

Group 1 - The core viewpoint of the article emphasizes China's commitment to maintaining the stability and security of global supply chains, particularly regarding the approval of rare earth export licenses to the EU [2] - In the first five months of this year, China's non-financial direct investment abroad reached $61.6 billion, marking a year-on-year increase of 2.3%. Investment in Belt and Road Initiative countries amounted to $15.52 billion, a growth of 20.8% [4] - China's foreign contracted projects achieved a turnover of $61.94 billion, up 5.4%, with new contracts signed totaling $98.68 billion, an increase of 13% [4] Group 2 - The Ministry of Commerce plans to enhance the investment environment for foreign enterprises by improving investment policies and addressing their concerns [6] - The Ministry will continue to implement the "2025 Action Plan for Stabilizing Foreign Investment," expanding open sectors and promoting pilot projects in telecommunications and healthcare [6] - The "Invest in China" brand is being actively promoted through various events, with 19 key activities held domestically and internationally in the first half of the year [6] Group 3 - The Ministry of Commerce aims to foster integrated development of domestic and foreign trade by organizing over 330 "Chinese Quality Products" events in the second half of the year [8] - There will be an emphasis on enhancing policy support, including the implementation of 15 support policies and measures to alleviate costs for struggling enterprises [8] - The initiative includes a "Doubling Action" for integrated trade enterprises, aiming to cultivate leading companies and establish comprehensive service platforms [8]

Group 1 - The core message emphasizes China's commitment to multilateralism and creating a favorable business environment amidst global economic challenges [1][2] - Foreign enterprises have significantly contributed to China's economy, accounting for one-third of imports and exports, one-quarter of industrial added value, and creating over 30 million jobs [1] - In 2024, despite global investment fluctuations, China established 59,000 new foreign enterprises, marking a 9.9% year-on-year increase, with foreign direct investment returns stable at 9% [1] Group 2 - China is reshaping global investment standards through institutional openness, with the "2025 Action Plan for Stabilizing Foreign Investment" expanding pilot openings in telecommunications and healthcare [2] - The unique advantages of China's business environment include a transparent and stable policy framework, which has led to a significant reduction in the negative list for foreign investment [2] - The combination of a large consumer market, digital economy, and green economy innovations showcases China's market appeal, driving growth potential [2] Group 3 - China's efforts to create an investment-friendly environment have global significance, as it strengthens trade ties with over 150 countries while countering protectionism [3] - The application to join the Digital Economy Partnership Agreement (DEPA) reflects China's proactive approach to global governance amidst rising protectionism [3] - The comprehensive coverage of foreign investment across 31 manufacturing categories and 548 subcategories illustrates the irreversible trend of interconnectedness in global supply chains [3]