China underlines foreign capital pledge as zero-Covid excesses prompt exodus of overseas firms

Surveys by multiple business lobby groups suggest heavy-handed curbs are undermining foreign investor confidence in China

Front-page article in Communist Party mouthpiece, the People’s Daily, echoes words used by Premier Li Keqiang at a multilateral trade summit

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Premier Li Keqiang addresses the China Council for the Promotion of International Trade (CCPIT) symposium in Beijing. Photo: Xinhua

Published: 7:49pm, 21 May 2022Updated: 9:49am, 23 May 2022

As more foreign firms mull an exit from China over its heavy-handed zero-Covid controls, the Communist Party’s mouthpiece has highlighted the country’s pledge to stabilise foreign investment.

“[We must] face up to the challenges, and strengthen our confidence,” a front-page article in the People’s Daily on Saturday said.

“The fundamentals of China’s economic growth in the long term have not changed, and we are fully capable of stabilising the positive development trend of utilising foreign capital.”

According to the Ministry of Commerce, foreign direct investment into China rose by 26.1 per cent to US$74.47 billion in the first four months of the year.

On the premise of keeping the total amount of foreign investment basically stable, we should continue to optimise the structure of foreign capital utilisation

People’s Daily

“On the premise of keeping the total amount of foreign investment basically stable, we should continue to optimise the structure of foreign capital utilisation,” the article added.