RCEP and CIIE to help attract more FDI

China's green development and dual-circulation growth paradigm, as well as key platforms such as the China International Import Expo and Hainan Free Trade Port, will help attract more foreign direct investment this year, said experts and business leaders on Monday.

With FDI expectations and confidence continuing to grow in China, global companies invested 943.15 billion yuan ($142.01 billion) in the country's nonfinancial sectors between January and October, soaring 17.8 percent on a yearly basis, said the Ministry of Commerce.

Because China experienced shorter lockdowns compared with other countries and its economy reopened swiftly after gaining control of the COVID-19, the nation－effectively backed by its complete industrial and supply chain－became a more attractive destination for global capital, said Zhou Zhicheng, a researcher at the Beijing-based China Federation of Logistics and Purchasing.

Apart from looking forward to the Regional Comprehensive Economic Partnership on schedule to take shape next year, China will encourage multinationals to actively participate in its dual-circulation development pattern, and add investment especially in sectors such as low-carbon fields and digital economy in the coming years, said Zhang Yongjun, deputy chief economist at the China Center for International Economic Exchanges.

Under the dual-circulation model, the domestic market is the mainstay while the domestic and foreign markets reinforce each other.

FDI into the services sector increased 20.3 percent year-on-year in the first 10 months, while high-tech industries saw the inflow of global capital jump 23.7 percent from the same period last year.

Hilton Group, the global hospitality giant, will open its 400th hotel worldwide in Lanzhou, Gansu province, next month, showing strong commitment to achieve its long-term plan to run 1,000 hotels in China's lucrative market by 2025.

"China is our second largest market with abundant tourism resources, diversified consumer groups and a booming urban economy, so we will actively seize emerging development opportunities and develop markets in lower tier cities during the country's 14th Five-Year Plan period (2021-25)," said Qian Jin, president of Hilton Greater China and Mongolia.

China saw investment from countries and regions involved in the Belt and Road Initiative and the Association of Southeast Asian Nations surge by 30.7 percent and 29.5 percent year-on-year, respectively, from January to October, said the Ministry of Commerce.

As all government preparations are now in place to ensure China fully meets its obligations when the RCEP agreement comes into effect, Lensey Chen, president of the China arm of Novozymes, a Danish biological solutions provider, said the company is pleased to see that the RCEP is about to take effect and it will increase its investment in both manufacturing and innovation activities in China.

Novozymes exports a large number of products manufactured at its factories in Tianjin and the provinces of Jiangsu and Liaoning to other RCEP economies.

"For example, our products applied in the detergent industry are exported to many RCEP countries like Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Japan and South Korea," Chen said, adding that the company is studying RCEP policies and hopes to make full use of the favorable policies brought about by the framework.

The pact allows for one set of rules of origin to qualify for tariffs reduction with its members. A common set of regulations means fewer procedures and easier movement of goods.