China's actual use of foreign capital continues to decline

Source: Internet
Author: User
Keywords Foreign capital foreign invested enterprises attracting foreign investment
Tags agency business business council continued economic enterprises etc financial
Jing Chu Network news (Chu Tian Metropolis Daily) According to Xinhua news agency in January-April this year, China's actual use of foreign capital of 27.67 billion U.S. dollars, the same period last year down 21%, 7 consecutive months fell.  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. 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 the company closed its washing-machine factory in Pudong, announcing that the production of washing machines in China would be integrated into Zhejiang province. Before September 2008, foreign-funded enterprises in Shanghai increased growth in earnings and profits by more than 20%, and then fell month after  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.  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 the new advantage of attracting foreign capital. Hornet, an expert of Shanghai Business Council, predicts that China's foreign investment may "bid farewell to the peak and turn into a trough", but China still has the new advantages and 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. Shanghai Business Council expert Song Jinpeo that historical experience shows that the economic situation in the developed countries will focus on reducing costs, the restrictions on technology transfer will be relatively loose, the desire of enterprises to expand 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.
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