Shenzhen's actual use of foreign capital exceeded US$2.1 billion in the first quarter (Q1) of this year, a surge of 32% year on year, according to data released by the city’s commerce bureau.
The city has become increasingly attractive to foreign investors thanks to its favorable business environment, officials from the bureau said.
Shenzhen is now home to corporations from over 160 countries and regions, including nearly 300 companies on the Fortune 500 list. It has so far approved over 100,000 projects with direct foreign investment, official figures show.
Government support and incentives have ensured the steady growth of foreign investment in Shenzhen, Shenzhen Economic Daily reported.
Last year, Shenzhen issued measures for encouraging multinational corporations (MNCs) to set up headquarters enterprises in the city, rewarding recognized headquarters firms with 3 to 6 million yuan (US$447,921-895,843). So far, 35 foreign-invested enterprises have been identified as MNCs’ headquarters enterprises in Shenzhen, including Walmart, Kareway Health, Shenzhen Smoore Technology and Flex, among others.
At the end of April, a total of 14 projects using foreign capital were awarded some 280 million yuan as part of the city government’s incentive plan for this year’s foreign capital utilization.
In recent years, the actual amount of foreign capital used in Shenzhen has been on the rise.
Government data showed that between 2016 and 2021, over 40,000 foreign-invested enterprises were established in the city, with the accumulated actual use of foreign capital reaching US$49 billion. The amount of foreign investment increased from US$6.6 billion in 2016 to a record high of US$10 billion in 2021.
In 2021, nearly 6,000 foreign-invested enterprises were established in the city, up by 30% year on year.
To create a more transparent, stable and predictable foreign investment environment, Shenzhen is actively introducing policies on foreign investment R&D centers, improving the public service system for foreign investment promotion, and accelerating the construction of a market-oriented and law-based business environment.