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China accelerates implementation of policies to attract foreign investment
BEIJING, Aug. 10, 2018 (BSS/Xinhua) – Since the beginning of this year,
China has introduced a series of policies to attract foreign investment,
which have been intensively implemented.
— Policies to attract foreign investment come in succession
In June this year, the State Council, China’s cabinet, introduced 23
specific measures in six aspects such as substantially relaxing market access
to promote effective use of foreign capitals for high-quality economic
development.
At the end of July, China unveiled a shortened negative list for foreign
investment, which widens market access for foreign investment in primary,
secondary as well as tertiary sectors, detailing 22 opening-up measures in
fields including finance, transportation, professional services,
infrastructure, energy, resources, and agriculture.
Later, the country also released a new negative list for foreign
investment in the country’s pilot free trade zones (FTZs). The list applies
to all FTZs in the country.
On July 30, China’s Ministry of Commerce (MOC) released a draft to solicit
opinions on foreign investors’ strategic investment in the Chinese listed
companies, aiming to relax the regulations on foreign strategic investment in
the domestic listed companies. The time limit for the transfer of shares was
shortened to one year from the previous three years.
Apart from the policies at the national level, local authorities in China
have also quickened the pace to unveil measures to attract foreign
investment.
For example, in July, Shanghai introduced a total of 100 new measures
covering five areas including the banking and securities sectors to further
expand the city’s opening-up.
Recently, Beijing has also issued a comprehensive plan including 117
specific measures to deepen reform and expand its opening-up. It will
encourage the foreign investment in high-tech industries, accelerate opening-
up of its financial industry, and deepen the reform of customs clearance
integration.
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In addition, Guangdong, Guangxi, Qingdao, Shenzhen, Chengdu and many other
provinces and cities have also made the work of expanding opening-up and
attracting foreign investment a top priority in the second half of the year.
— Determination in opening-up
Experts pointed out that the intensive introduction of policies to attract
foreign investment reflects China’s determination and intensity to
independently promote its opening-up.
Foreign capital has become an inseparable part of the Chinese economy as
it has played an important role in increasing employment, promoting
technological progress, and promoting economic restructuring, said Sang
Baichuan, a professor at the University of International Business and
Economics.
In the long run, foreign capital is expected to make great contribution to
China’s stable economic growth and transformation and upgrading. Building a
fair, friendly and stable business environment is crucial to attracting
foreign investment, especially high-quality foreign investment, according to
Liang Guoyong, an economic officer at the United Nations Conference on Trade
and Development (UNCTAD).
With the release of China’s foreign investment policies and the
increasingly optimized foreign investment environment, many foreign-funded
enterprises have expressed optimism about their investment prospects in
China.
Recently, Tesla has announced a plan to build a factory in Shanghai that
eventually will be capable of cranking out 500,000 vehicles a year.
The BMW Group and Brilliance Auto have recently reached a long-term
framework agreement, under which their joint venture in Shenyang, BMW
Brilliance, will continue to expand investment and production.
China has a stable investment environment and strong industrial supporting
capabilities. It will continue to improve the business environment, protect
the legitimate rights and interests of foreign-funded enterprises in China,
and make it the first choice for foreign investment, according to Gao Feng,
MOC spokesman.
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