7 months of use of foreign capital decline in value-added tax changes in foreign companies not indications

VAT reform appeared "foreign companies not indications" this January-April, China's actual use of foreign capital of 27.67 billion U.S. dollars, down from the same period last year 21%, 7 consecutive months fell. As the highest level of openness in the country and the most concentrated foreign capital, the number of new batch of foreign investment in Shanghai in January-April and the amount of attracting contract foreign capital has been a rare decline for many years: year-on-year decline of 15% and 11% respectively;　　But it is growing harder to sustain. The above statistics show that even the "better than the national average" in Shanghai, as well as the whole country is facing a worsening of the situation of foreign investment, and in the country's actual use of foreign capital for 7 consecutive months, behind the decline is more serious contract foreign capital decline.　　Liu Jinshi, deputy director of the Office of the leading group of foreign investment in Shanghai, believes that, in the context of the international financial crisis, the global economic downturn is expected to worsen, the follow-up effect of China's continued decline in attracting foreign investment deserves attention, and the relevant supporting policies should be put on the agenda as soon as possible. Some High-tech foreign companies and research and development center costs increased since 2009, China's comprehensive implementation of value-added tax transformation reform, enterprises can lighten the burden of 120 billion yuan a year.　　But unexpectedly, many foreign-funded enterprises have appeared "not indications". According to the Shanghai Business Committee, the negative impact of VAT reform on foreign-funded enterprises is most prominent in the High-tech enterprise and Research and Development center. In spite of the deduction to be deducted after the sale, however, foreign High-tech enterprises generally reflect the increase in capital costs and time costs, "outweigh the gains", some high-tech foreign companies, products are all exported, can not be deducted according to the sales tax; for foreign research and development centers, because there is no sales tax, only sales tax,　　Therefore, the cost of equipment investment of foreign research and Development Center will increase by 17%, and the cost of operation and investment will be increased greatly. In particular, it is necessary to point out that the new value-added tax transformation reform, the impact of which is China's long-standing focus on the introduction of advanced manufacturing and research and development center, such as the encouragement of foreign-funded projects. Comparatively speaking, it is advantageous for the general foreign-funded enterprises (non-encouragement Class).　　Because the original tax-imported equipment for the non-encouraging foreign-funded enterprises can be deducted in the future operation, thus reducing the operating cost. "This shows that there is further improvement in the reform of VAT transformation." Especially in the current severe economic situation, the implementation of the new policy should give full consideration to the economic growth of insurance, the introduction of foreign investment policies in the long-term sound implementation is beneficial.　　"Liu Jinshi said. Need to prevent the "merge" phenomenon upgrade of foreign enterprises since this year, because of the international market shrinkage and its own poor management, and other reasons, Shanghai two well-known foreign enterprises appear "merge": First Intel company announced the integration of production operations in China, the Shanghai Pudong chip packaging testing plant business transfer to the Chengdu plant, The move means shutting down the factory in Shanghai, involving more than 2000 employees, and then Whirlpool closed its washing machine factory, announced that the production of washing machines in China to be integrated into Zhejiang remains to be understood, before September 2008, Shanghai foreign-funded enterprises operating income and profit growth was more than 20%, after the month decline.　　Up to now, although the Shanghai foreign Enterprises did not appear the scale of the "merge", but similar to Intel, Whirlpool there is a combination of resources, reduce labor and production costs of a few foreign enterprises. From the customs statistics, the first quarter, the Shanghai city's exports and imports fell 20.8% and 32.1% respectively Year-on-year, but the two indicators of foreign-funded enterprises were lower than the average level of 2%-3%, foreign-funded enterprises have always been "good at" mechanical and electrical products and High-tech products import and export, the decline is more obvious.　　This shows that the foreign-owned enterprises are affected by the financial crisis and the international market contraction more serious, the operating situation is not optimistic.　　Wang Ming, researcher of Shanghai International Institute of Economic and Trade, advises with Intel and Whirlpool as a cautionary tale, all localities should strengthen the business investigation of foreign-funded enterprises, especially large multinational corporations, establish relevant commercial early-warning mechanism and emergency handling mechanism, and pay attention to solving the difficulties of production and operation, helping them to tide over the difficult times. China still has new advantages and new opportunities to attract foreign capital Shanghai Business Council expert Hornet forecast, by the international environmental impact, China this year to attract foreign investment may be "farewell to the peak, into the trough", but China still has a new advantage and new opportunities to attract foreign investment. Take Shanghai As an example, 3 years ago, the service industry attracted foreign investment accounted for the total amount of contract foreign investment has reached about two-thirds, and in the financial crisis in the past six months showed a strong "resilience".　　In the January-April, the modern service industry represented by the headquarter-type economy, commerce, logistics and finance, attracted more than 40% of the contracted foreign capital. Song Jinpeo, an expert on the Shanghai Business Council, said although the situation of absorbing new foreign capital is grim, considering that our economy is affected by the international financial crisis in general, the State has introduced a series of policy measures to stimulate domestic demand and boost economic growth, so it does not rule out a new project and scale of foreign investment in 2009. of the curve. "Because the economic growth rate directly determines the enterprise's expansion power and profitability level, as long as the market growth prospects, foreign direct investment will be invested or even grow." "Song Tournament," The historical experience shows that the developed countries in the economic situation, will focus on reducing costs, the restrictions on technology transfer will be relatively loose, enterprises to expand the aspirations of new markets will also be more intense, High-tech, service outsourcing will increase the possibility of outward transfer. At present, China's financial system is relatively safe, economic development is relatively stable, with the formation of foreign capital into the "island" effect of the conditions.　　He suggested that if the country showed a more open posture and implemented more supportive policy measures, the financial crisis could be the opportunity for China to introduce high technology and import much-needed industries. Xinhua News agency reporter Yu (Xinhua News agency, Shanghai, May 30)