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China set a growth target of “around 5 per cent” for this year, one of the lowest in decades. Photo: AFP

China seeks foreign investors with ‘long-term vision’, senior economic official says

  • Han Wenxui, a senior figure in the Central Financial and Economic Affairs Commission, tells a forum that the country is committed to opening up
  • Han also identifies ‘external pressure’ and the country’s ageing population as two major threats to further development

China is open to investment from all over the world, and is offering foreign businesses the opportunity to catch “big fish” if they “deeply engage” in the domestic market, a senior economic official said on Saturday.

Han Wenxiu, deputy director of the General Office of the Central Financial and Economic Affairs Commission, made the comments while addressing a forum in Beijing, where he also identified external pressure and the country’s ageing population as the main barrier to the country’s development.
He told the China Development Forum that the country would continue to expand market access and promote the “institutional opening up” of rules, regulations and standards.

“We welcome companies from all over the world to invest in China, and we expect foreign investors to develop a long-term vision and be deeply engaged in the Chinese market, so they can cast a long line to catch a big fish,” Han said, according to the Chinese media outlet Caixin’s report.

The China Development Forum is an annual event organised by the State Council’s Development Research Centre. This year’s conference was the first to be held offline since the Covid-19 pandemic began.

China looks to private firms and foreign investment to fuel growth

Han said China was a hotspot for overseas investors, attracting US$189 billion in foreign capital last year compared with US$144 billion in 2020 – a figure he described as the best example of foreign investors’ confidence in the country.

But he warned that it had to overcome the economic impact of efforts by unnamed external forces to contain and suppress China and the country’s ageing population.

In the case of the former, he said external pressure could also be turned into internal motivation, while the country’s strong material base, complete industrial system and promising domestic market would help it respond to efforts to suppress its growth.

He said China will continue to nurture talent, encourage innovation and open up to enhance the economy’s momentum.

Han Wenxiu identified external pressure and an ageing population as major challenges. Photo: Simon Song

“We will continue to improve population quality … to improve the adaptability between human capital and industrial upgrading.”

Earlier this month, the authorities set a growth target of “around 5 per cent” for this year, one of the lowest in decades.

Han said this target had factored in the need to expand employment and improve people’s livelihoods, but also took various challenges into account.

“Judging from current developments, [we are] capable of achieving this target,” Han said, adding that it was important to improve both the quality and quantity of economic growth.

Han also urged other countries to maintain the global supply chain, saying: “The Chinese economy is a powerful propeller and stable anchor for the recovery of the world economy.

“Disregarding the laws of economics and pushing for decoupling will inevitably harm global producers and consumers, which is against the whole world.”

Xi calls for China to ‘stabilise, expand exports’, attract investment

Huang Qifan, a former mayor of Chongqing, told the forum that China’s unified domestic market was an important element in addressing the challenges of decoupling and supply chain risks, along with its 1.4 billion people – around a fifth of the world’s population.

These factors could make its economy more resilient and give it greater room for internal circulation when facing external shocks, he said.

“From these perspectives, ‘decoupling and breaking chains’ as advocated by some people will not succeed,” Huang said.

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