China’s Development Plan for the Utilization of Foreign Capital during the 14th Five-Year Period: Prospects and Analysis

Abstract

On October 22, 2021, the Ministry of Commerce of the People’s Republic of China (PRC) promulgated the Development Plan for the Utilization of Foreign Capital during the 14th Five-Year Period. The plan has attracted wide attention from investors and scholars at home and abroad. The global economic recovery is full of unpredictable challenges due to the spread of Covid-19, so absorbing foreign investment is critical to the economic development in most countries. The plan was based on the 14th Five-Year Plan for National Economic and Social Development and the Outline of Long-term Objectives for 2035. China is changing the direction of attracting investment from manufacturing industry to service industry. This article discusses China’s current utilization of foreign capital and analyzes the newly promulgated plan, including its key features, overall objectives, and basic tasks. It also examines the opportunities and challenges China faces in its future utilization of foreign capital.