In the News: FDI Growth; QFII Quota and Another IP Court
January 15, 2019 | BY
Jacelyn JohnsonFDI into China rose 3% in 2018 following strong December numbers; SAFE doubles QFII quota amidst market opening up; and first IP Court launches in Northeast China.
FDI in China Grows 3% in 2018
Foreign direct investment (FDI) into China rose 3% in 2018 to $134.97 billion, according to official statistics released by the Chinese Ministry of Commerce (MOFCOM).
The ministry said foreign companies are showing more confidence investing in China, despite concerns surrounding the global economy. FDI in December alone reached $13.71 billion, a 23.2% jump from the same period in 2017.
The data released by MOFCOM showed particular growth in high-tech related investment, with 35% year-on-year growth, while investment in China's manufacturing industry contributed to over 30% of the total FDI.
There were nearly 1,700 major FDI projects with contract value above $50 million, up 23.3% from the previous year. Tang Wenhong, a senior official with MOFCOM said that the increase in FDI contracts is an indicator that foreign investors' confidence in China has not declined.
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China Doubles QFII Quota
In an effort to further open up the capital market, China's foreign exchange regulator announced on January 14 that they have doubled the total quota of the Qualified Foreign Institutional Investors (QFII) program to $300 billion, from the previous $150 billion quota.
China established the QFII scheme in 2002 to allow foreign institutional investors to buy A-share stocks. As at the end of 2018, China had approved a total QFII quota of about $101 billion, according data released by the State Administration for Foreign Exchange (SAFE).
SAFE said that the move is aimed at meeting the demand from foreign investors to increase investment in China's capital market.
This reflects China's move to further liberalize its capital market by introducing more financial opening up measures, especially in light of the ongoing trade disputes with the U.S.
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An IP Court for Northeast China
China has recently launched the Changchun Intellectual Property Tribunal in Jilin province, the first of its kind in Northeast China, in an aim to provide judicial guarantees to innovation and development within the province.
The tribunal, which is set up within the Changchun Intermediate People's Court, will hear all IP-related disputes including patents, new plant varieties, integrated circuits designs, trade secrets, software and brand disputes, and unfair competition, within the municipality.
The newly established IP tribunal will also accept civil and criminal trials that are outside the jurisdiction of the intermediate court on cases related to copyright, trademarks, unfair competition and technology contracts.
China has been coming out strong on IP protection, and this shows an ongoing initiative of China's strategy to further strengthen its IP protection rights throughout the nation, and provide an open and transparent avenue to deal with IP rights infringement.
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