China remains the hottest investment destination in the world thanks to its complete industrial system and promising consumer market, Gao Feng, the spokesperson for the Ministry of Commerce, said at a press briefing on Thursday in Beijing, rebutting reports that U.S. tariffs are causing some companies to leave China.
"China has formed a complete industrial system with an accommodating basic infrastructure. The business environment is also improving, and the consumer market is also upgrading and has bright prospects," Gao said.
He also noted that surging foreign direct investment (FDI) in China also showed foreign investors' confidence in the Chinese economy and market.
In the first five months, China's actual use of FDI in U.S. dollar-denominated terms increased 3.7 percent year-on-year to $54.61 billion. Specifically, U.S. investment in China was up 7.5 percent.
Also, the cost of U.S. tariffs on Chinese goods are passed to U.S. importers, retailers and consumers, Gao said, quoting reports from the IMF and other institutions such as JPMorgan and Goldman Sachs.