China will put the stability and growth of foreign investment high on its economic agenda this year, with more dedicated efforts channeled toward expanding market access, fostering a fair competitive climate, and facilitating the flow of innovative factors, the State Council, China's Cabinet, said on Friday.

▲Staff members work at a workshop in Xi'an International Trade and Logistics Park in Xi'an, Northwest China's Shaanxi province, July 20, 2023. [Photo/Xinhua]

Foreign investment plays a vital role in promoting common prosperity and the development of the Chinese and world economies, according to the State Council Executive Meeting chaired by Premier Li Qiang.

China saw a significant increase in the number of newly established foreign-invested enterprises in January, said the Ministry of Commerce on Friday, with 4,588 companies being set up nationwide, representing year-on-year growth of 74.4 percent.

Meanwhile, China has witnessed the continuous optimization of its foreign investment structure, the head of the ministry's department of foreign investment administration said on Friday, pointing out that FDI in high-tech manufacturing in January jumped 40.6 percent on a yearly basis.

However, foreign direct investment into the country in terms of actual use edged down 11.7 percent year-on-year to 112.71 billion yuan ($15.66 billion) last month, the ministry said.

Going forward, more forceful measures will be employed to forge a world-class, market-oriented business environment governed by a sound legal framework, in order to solidify the confidence of foreign investors in expanding their presence in China and improve the overall quality of the investment and trade environment, the meeting said.

China's enduring appeal as a magnet for foreign investment is expected to persist thanks to its infrastructure development, technological advancements, industrial capabilities and super-sized market, said Gao Lingyun, a researcher at the Institute of World Economics and Politics of the Chinese Academy of Social Sciences.

The global slump in cross-border investment and shifting geopolitical dynamics, however, will pose significant obstacles, said Gao, adding that many countries, particularly developing nations and emerging economies, are actively loosening their investment restrictions and competing fiercely to attract foreign capital.

Recent fluctuations in short-term foreign investment data are an important reminder that economic trends are subject to periodic ups and downs, and do not negate the overall positive trajectory of China's economy, Commerce Minister Wang Wentao said at a news conference in late January.

China's unwavering dedication to openness and its welcoming stance toward foreign companies will continue to make it a popular choice for global investment, Wang said.

Reporter: Wang Keju