Ministry of Commerce: the situation of absorbing foreign investment is grim

May 31 Afternoon News, the Ministry of Commerce today on its website published business situation Review article "fully play the positive role of absorbing foreign capital to guarantee growth" pointed out that, as the U.S. subprime mortgage crisis developed into an international financial crisis, China's absorption of foreign direct investment has been declining for 7 consecutive months, the current China's absorption of foreign But as long as appropriate, timely adjustment of policies, take effective measures, there is still the possibility of "crisis" as "machine." The following is the full text of the article: to fully exert the positive effect of absorbing foreign capital on the growth of insurance one, our country absorbs the foreign investment to face the grim situation since October 2008, with the U.S. subprime mortgage crisis developed into an international financial crisis, China's absorption of foreign direct investment has been declining for 7 consecutive months, This is the first time since the Asian financial crisis in 1998 to absorb foreign investment overall decline. In January-April this year, 6,241 foreign-invested enterprises were set up nationwide, the actual use of foreign capital 27.67 billion U.S. dollars, respectively, and the decline of 34.2% and 21%. Although the actual use of foreign capital in the first 3 months of this year has seen a decline in monthly narrowing, but by April, the monthly actual use of foreign investment fell back to 22.5%.　　At present, we are faced with a greater uncertainty in the internal and external environment, the absorption of foreign investment in the short term to achieve recovery growth is a certain degree of difficulty. The change of external environment is the important reason of the decline of absorbing foreign capital in China. On the one hand, the international financial crisis directly led to a sharp reduction in the scale of global direct investment (FDI). According to the latest United Nations UNCTAD data, global FDI flows were 1.66 trillion US dollars in 2008, down 15% from 2007. Cross-border mergers and acquisitions have also plummeted, with 2008 deals falling 29% per cent year-on-year. The United States, Japan, the European Union and other developed economies in the recession, the ability of multinational companies to invest in foreign investment, investment will also significantly weakened. According to the survey, the proportion of multinational companies intending to increase their investment by more than 30% per cent fell from 32% in 2007 to 21% per cent, and the proportion of enterprises proposed to reduce investments rose from 10% to 16%.　　Global FDI will fall further by 30% per 40% in 2009, as many new investment projects are shelved or canceled. On the other hand, in order to deal with the financial crisis, many countries further relaxed restrictions on foreign capital access, the introduction of tax concessions and other preferential policies, China's absorption of foreign investment faces intensified international competition. In addition, in order to preserve and create new jobs, the developed countries attach importance to the recovery of the real economy and adopt fiscal and taxation measures to attract the return of multinational corporations.　　At the same time, in order to survive the crisis, transnational corporations have substantially restructured their global investments, leading to greater flows of international capital among developed countries, reduced investment in developing countries, and even the withdrawal of manufacturing investment in developed country markets and significant changes in international capital flows. Second, "Crisis for the machine" to boost confidence after the reform and opening-up more than 30 years of development, foreign-invested enterprises have become an important part of our national economy. By the end of April 2009, China has set up a total of 66 foreign-invested enterprises.60,000, the actual use of foreign capital 8830. 800 million dollars. 2008, accounting for about 3% of the total number of foreign-funded enterprises, its industrial output accounted for 29.7% of the country, pay taxes accounted for 21% of the country, exports accounted for 55.3%, imports accounted for 54.7%, directly absorb employment 45 million people.　　Absorbing foreign capital plays a very positive role in the development of our national economy, stabilizing and enlarging the scale of absorbing foreign capital, optimizing foreign industry and regional structure, which is of great significance for our country to overcome current difficulties and maintain long-term development. China's political stability, the long-term trend of economic development has not changed, with the rapid development of industrialization and urbanization, the enormous potential of the domestic market will be released.　　A series of measures such as expanding domestic demand, maintaining financial stability, promoting industrial revitalization and technological innovation in response to the financial crisis will provide new opportunities and development space for foreign investment. Third, efforts to create a good investment environment despite the current impact of the international financial crisis, China's current absorption of foreign investment faced with temporary difficulties, but as long as appropriate, timely adjustment of policies, take effective measures, there is still the possibility of "crisis" as "machine." Since the end of last year, the provinces and cities have also taken positive measures to further expand the opening, improve the investment environment, and effectively help companies tide over the difficulties and boost investor confidence.　　The Ministry of Commerce issued "on the 2009 national Absorption of foreign investment guidance", the business sector across the country to actively innovate the development of ideas, strengthen and improve services to promote the absorption of foreign capital and good and fast development. First of all, around the general requirements of "expanding domestic demand, keeping growth and adjusting structure", we should co-ordinate and coordinate the work of absorbing foreign investment and create a good environment to encourage foreign investors. To comprehensively clean up and standardize administrative fees and inspection matters involving foreign investment, reduce "arbitrary charges" and repeat inspections, lighten the burden of enterprises, continue to promote the reform of foreign investment examination and approval management system, and further decentralize the approval of foreign investment; vigorously carry out online approval, reduce the audit links of foreign investment projects　　To improve the system of joint annual inspection of foreign-funded enterprises, improve administrative efficiency and promote investment facilitation. Secondly, we should strengthen industry guidance and optimize the industrial structure of foreign investment. Actively guiding foreign investment to High-tech industry, advanced manufacturing industry, energy-saving and environmental protection industries and modern service industries, encouraging the deep processing of agricultural, planting, aquaculture and agricultural products (17.13,-0.17,-0.98%) with high technological content, large value-added and increasing farmers ' income. Introducing modern agricultural technology and management methods, earnestly implementing various supporting policies, encouraging foreign-funded enterprises to carry out international service outsourcing, supporting foreign investment enterprises to actively participate in various investment projects in the country to expand domestic demand, and playing an active role in adjustment and revitalization of key industries; Further encourage multinational companies to establish regional headquarters in China,　　Research and Development Center, Logistics Center, Procurement Center and Training center, improve the function of regional headquarters. Third, to promote foreign investment in the central and western regions and optimize the regional structure of foreign capital. To improve the support policy of expanding opening and absorbing foreign capital in the MidwestOpen policy measures, strengthen the support for infrastructure construction of the national Economic and technological Development zone in the Midwest, improve the ability of the Midwest to undertake the industrial transfer in the international and eastern regions, and encourage the Eastern and the Midwest to strengthen counterpart cooperation to realize the interaction and harmonious development between East and west China. Finally, strengthen and improve services, and strive to solve problems for enterprises. Pay close attention to the development and influence of the international financial crisis, strengthen the cooperation between departments, solve the difficulties encountered in the operation of enterprises in time, strengthen the financial services for foreign-funded enterprises, study and improve the relevant policies on the domestic listing of foreign-funded enterprises, guide the quality of foreign-funded enterprises in the timely listing To facilitate enterprises to develop the domestic market, to help enterprises stabilize production scale, reduce the phenomenon of discontinued layoffs and lay a foundation for long-term development. Recent surveys of international organizations and foreign chambers of commerce show that multinationals remain bullish on investment cooperation with China in the long run. UNCTAD's 2009-2011 World Investment Outlook survey shows that stable economic growth, large domestic market size, low-cost labour, market openness and other factors make China continue to be the most attractive host of investment. The US Chamber of Commerce recently announced that more than 80% per cent of US companies surveyed are optimistic about the prospects for the next 5 years in China and that 73% will expand investment in the country. Even in the context of the crisis, some multinationals do not abandon the Chinese market and actively promote investment in China.　　In January this year, Siemens added nearly 190 million U.S. dollars to its regional headquarters in China to further expand its production and business activities in the field of alternative energy, and the US company invested 99 million dollars in the development and laboratory production of biotechnology materials and technologies. We will pay close attention to the development of the situation, not only the difficulties of absorbing foreign investment are fully estimated, but also to China's economic development full of confidence. We should seriously study and perfect the laws, regulations and policies of foreign investment, create a stable and transparent policy environment for foreign investment, unify the open market environment and standardize an efficient administrative environment, stabilize and enlarge the scale of absorbing foreign capital, improve the quality and level of foreign capital utilization, and better exert foreign capital in promoting independent innovation, The positive role of industrial upgrading and regional coordinated development. (Snow Ting)