Attracting foreign investment may fall ahead of the year

Source: Internet
Author: User
Keywords Foreign capital foreign investment
External environmental changes lead to a decline in foreign investment China is still the most attractive investment in the latest statistics released by the Ministry of Commerce, this January-April, the country's newly established foreign-invested enterprises 6,241, the actual use of foreign capital of 27.67 billion U.S. dollars, the year-on-year decline of 34.2% and 21% respectively.  Although the actual use of foreign capital in the first 3 months of the year has seen a decline in monthly narrowing, but by April, the monthly actual use of foreign investment fell back to 22.5%.  Since last October, China has been absorbing foreign direct investment for 7 consecutive months, which is the first comprehensive decline since the Asian financial crisis in 1998. How should we look at this?  Is China's attractiveness for foreign investment still there? It is difficult to achieve recovery growth "our country absorbs foreign investment to face the grim situation", the Ministry of Foreign Investment Management of Mofcom said when he said, "At present, we are facing greater uncertainty in the internal and external environment, and it is difficult to achieve recovery growth in the short term."  "The director of the analysis said that the external environmental change is leading to the absorption of foreign investment in China is an important reason." On the one hand, the international financial crisis directly led to a sharp reduction in the scale of global direct investment. 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%.  As many new investment projects are shelved or cancelled, global FDI in 2009 will fall further by 30% per 40%.  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 transnational 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.  China still has the most attractive investment the official also said that, despite the current impact of the international financial crisis, the current China's absorption of foreign investment faced with temporary difficulties, but as long as appropriate, timely adjustment of policies, take effective measures, still have the possibility of "crisis" as "machine." "China's most important feature is that there is a sound legal system and a large market size, there is a better consumption growth, which will be to invest in China's foreign-funded enterprises with positive confidence."  Said Yao Jian, spokesman for the Ministry of Commerce. Recent surveys of international organizations and foreign chambers of commerce show that multinationals remain bullish on investment cooperation with China in the long run. United Nations Conference on UNCTAD, 200The 9-2011 World Investment Outlook survey shows that stable economic growth, large domestic market size, low-cost Labor, market opening and other factors make China continue to be the most attractive investment host country.  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. Experts said that with the rapid development of industrialization and urbanization, the enormous potential of China's domestic market will continue to 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 also provide new opportunities and development space for foreign investment, so it is not ruled out that the 2009 new projects and the scale of foreign capital can come out a "before and after the rise" curve. To attract foreign capital to create better conditions "foreign-invested enterprises have become an important part of our national economy." "It is of great significance for China to overcome current difficulties, stabilize exports, promote employment and expand consumption by stabilizing and expanding the scale of foreign investment and maintaining the healthy development of foreign-funded enterprises," Yao said. He said that in the current context, the Ministry of Commerce and related departments will continue to introduce relevant policy measures to further support foreign investment. "Support for foreign investment is not only to support the growth of investment and trade, but the most important is to support China's economic growth, support China's employment, support China's technological upgrading and management of modernization, but also a part of our modernization process."  "he said.  According to the Department of Foreign Investment Management of the Ministry of Commerce in charge of the introduction, the next step, will seriously study the improvement of foreign investment laws and regulations and policy system for foreign investment to create a stable and transparent policy environment, unified open market environment and standardize an efficient administrative environment.  First, we will continue to promote the management system reform of foreign investment examination and approval, further decentralization of foreign investment approval and promotion of investment facilitation.  Second, strengthen industry guidance, optimize the industrial structure of foreign investment. Third, to promote foreign investment in the central and western regions and optimize the regional structure of foreign capital.  We should improve the support policy of expanding opening-up and absorbing foreign capital in the central and western regions, and study and formulate policy measures to broaden opening-up.  In addition, it will strengthen the financial services for foreign-funded enterprises, study and improve the relevant policies on the domestic listing of foreign-invested enterprises, guide the quality of foreign-invested enterprises to be listed in the mainland timely, ease the capital pressure, facilitate the development of the domestic market for enterprises, and so on. "At present, our government has adopted a series of policy measures to expand domestic demand and stabilize imports and exports, and sustained growth in national economy and domestic consumption will further boost the confidence of foreign investors, and China will maintain steady growth in absorbing foreign capital." Yao is full of confidence.
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