With a population of more than 1.4 billion, China is increasingly playing an important and influential global role. Two decades after joining the WTO, it has since grown into the world's second largest economy, the No. 1 trader in goods and the second largest destination for foreign investment.
World Bank data showed that in the 2013-2021 period, China's contribution to global economic growth averaged 38.6 percent, exceeding the combined contribution of the Group of Seven countries.
In 2022, beating market expectations and outrunning many major economies, such as Germany, China's GDP expanded 3 percent year-on-year to 121.02 trillion yuan ($17.94 trillion), according to the National Bureau of Statistics. It's reassuring to the world that the country's economy has managed to maintain its steady pace and will continue to serve as a major engine for global economic expansion.
China's economy is set to continue its recovery — and at a faster pace in 2023, as consumption, services and emerging industries, such as new energy vehicles, are expected to regain strong growth momentum. Economists at Morgan Stanley raised their GDP forecast for China to 5.7 percent in 2023, citing stronger economic activity as the country's economic fundamentals remain sound and resilient.
Investing in China generates profits that grow apace with China's economy; foreign-invested enterprises' returns on investments in China are higher than the world average. China is the world's most promising consumer market with over 400 million middle-income people. With per capita GDP exceeding $10,000, the country has entered an important stage of increased consumption.
Eyeing China's huge and more open market, comprehensive industrial system, and improved business environment, many foreign-funded businesses are doubling down on their investments in the world's second-largest economy.
Attracted by opportunities in areas such as carbon neutrality, high-end manufacturing and innovation-driven development, China's actual use of FDI surged 6.3 percent year-on-year in 2022, hitting more than 1.23 trillion yuan. In US dollar terms, foreign capital inflow went up by 8 percent year-on-year to $189.13 billion.
The performance was better than expected, given the domestic and external challenges, especially the growth rate for the manufacturing industry and major foreign investment projects — those with contractual foreign investment of more than $100 million each — being 46.1 percent and 15.3 percent, respectively.
China will improve the implementation of its FDI policies and guide FDI into high-end manufacturing, modern services, high-tech and environmental protection industries, and central, western and northeastern regions.
