(Yicai) Jan. 31 -- Almost 70 percent of foreign businesses in China are still optimistic about the prospects for the local market over the next five years, according to the results of a survey by the China Council for the Promotion of International Trade.

More than 80 percent of foreign-funded companies were satisfied with China's business environment last year, while over 90 percent believe the Chinese market is attractive, a report on its findings published by the trade body showed yesterday.

The survey, held in the fourth quarter of last year, involved nearly 600 foreign firms. Some 68 percent of the respondents were small and medium-sized companies, while 65 percent of them are focused on processing and manufacturing activities in China.

The results indicate that the fundamental stability and long-term positive trajectory of China's economy remain unchanged, said CCPIT spokesperson Yang Fan, adding that the attractiveness of the Chinese market for foreign investment is likely to strengthen.

Regarding expectations over the next five years, optimism was up 1.8 percentage point from a year earlier. From an operational point of view, more than 90 percent of foreign firms expect the profit margin on investments in China will either remain stable or increase by about 5.8 points, according to the report. The percentage of those planning to boost investment in China climbed by around 4.5 points.

The value of certificates of origin with preferential treatment issued by the National Trade Promotion System rose 7.1 percent to USD65.2 billion, while the number of certificates jumped 22 percent to 1.68 million, Yang noted. 

The steady increase in the issuance of COs, especially those with preferential treatment, shows that as China steps up the implementation of free trade deals and other policies to steady trade, the capability and level of preferential treatment  enjoyed by the country's traders when exporting with preferential benefits is always improving, Yang said.

Some 53,766 new foreign businesses were set up in China last year, a 40 percent jump from 2022, according to data disclosed by the commerce ministry. The actual use of foreign capital in the country fell 8 percent to CNY1.1 trillion (USD158 billion), but remained at a historically high level.

Editor: Martin Kadiev