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Economy

Strengthening the Policy of Stabilizing Foreign Investment to Support the Development of Foreign Enterprises in China

2024-03-20   

Expand market access and improve the level of foreign investment liberalization; Intensify policy efforts to enhance the attractiveness of foreign investment; Optimize a fair competition environment and provide good services to foreign-invested enterprises; Smooth the flow of innovative elements and promote innovation cooperation between domestic and foreign enterprises; On March 19th, the General Office of the State Council issued the "Action Plan for Solidly Promoting High Level Opening up to the Outside World and Strengthening Attraction and Utilization of Foreign Investment" (hereinafter referred to as the "Action Plan") to improve domestic regulations and better align with international high standard economic and trade rules. The Action Plan proposes 24 measures from 5 aspects, which is seen as another specific action for China to promote high-level opening up to the outside world and make greater efforts to attract and utilize foreign investment. Industry experts and foreign-funded enterprises interviewed by reporters have expressed that China is committed to promoting high-level opening up and high-quality development, from expanding market access to creating a market-oriented, legal, and internationalized first-class business environment, and then to opening up and sharing a super large scale market, and other measures to consolidate the confidence of foreign investment in China's development. Faced with domestic and international economic pressures and fluctuations in China's absorption and utilization of foreign investment, policies have been intensifying. This year's government work report proposes to increase efforts to attract foreign investment and makes multiple arrangements. Huang Shouhong, the head of the drafting group for the government work report and director of the State Council Research Office, summarized these arrangements in three aspects: firstly, steadily expanding institutional openness; Secondly, we need to continue to relax the access to foreign investment markets; The third is to improve the level of foreign investment service guarantee. In recent days, multiple relevant departments have expressed their willingness to accelerate the implementation of relevant measures. The Ministry of Commerce stated that it will work with the National Development and Reform Commission and relevant departments to revise the national version of the negative list of foreign investment access, and achieve zero restrictions on foreign investment access in the manufacturing industry. The Ministry of Industry and Information Technology said that it is preparing to pilot the opening of value-added telecommunications services such as Internet data centers this year. The International Department of the People's Bank of China has issued a document proposing to steadily expand institutional openness in the financial field, including rules, regulations, management, and standards. Nie Pingxiang, a researcher at the Research Institute of the Ministry of Commerce, stated in an interview with reporters that the Action Plan reflects the above deployment direction. Specifically, these policies will increase efforts to promote high-level opening-up to the outside world, including further reducing the negative list of foreign investment access; On the other hand, we will comprehensively optimize the business environment and create the "Invest in China" brand, including providing comprehensive national treatment in areas of great concern to foreign-funded enterprises such as intellectual property, government procurement, bidding, and standard formulation. This is also the direction that China adheres to in expanding high-level opening-up to the outside world. Zhang Fei, Deputy Director of the Institute of Foreign Investment at the Research Institute of the Ministry of Commerce, told reporters that since the 20th National Congress of the Communist Party of China, China has steadily expanded institutional openness, continued to relax market access for foreign investment, and achieved the goal of actively attracting foreign investment and serving the high-quality development of the Chinese economy. In recent years, the newly added large projects by foreign investment have mainly focused on industries such as automobile manufacturing, new energy, and healthcare. According to the latest data, in January of this year, the actual amount of foreign investment used by the manufacturing industry was 33.11 billion yuan, a year-on-year increase of 20.5%, with the actual use of foreign investment in high-tech manufacturing increasing by 40.6%. The high-tech industry attracted 39.16 billion yuan in investment, accounting for 34.7% of the actual amount of foreign investment used. More advantages

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