Ministry of Commerce: Foreign capital Approval Authority continues to be decentralized
KeywordsForeign capital foreign investment Electrolux
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(Reporter Zhu Fina) The Ministry of Commerce will be the next step to introduce policies to support foreign investment. According to the Department of Foreign Investment Management of the Ministry of Commerce, the authorities will further decentralize the approval of foreign investment, promote foreign investment in the Midwest, strengthen the financial services for foreign-funded enterprises and facilitate the development of domestic markets for enterprises. At the same time, it is reported that a report aimed at stabilizing foreign investment has been reported to the State Council. "The report covers a wide range of more than 30, including the standards of high tech companies and the policies of foreign investment in real estate," said a Ministry of Commerce. "Short-term difficult to achieve growth in China's FDI for 7 consecutive months of negative growth, a few days ago, the Ministry of Commerce made a statement:" To absorb foreign investment in the short term to achieve recovery growth is a certain degree of difficulty. "In the first quarter of this year, FDI fell by a narrow monthly narrowing phenomenon, but in April again fluctuated, FDI fell back to 22.5%." The Ministry of Commerce said that the internal and external environment of greater uncertainty is the main reason for the recovery of difficult to recover, the future of attracting foreign investment situation is grim. "There is no doubt that the change in the external environment is the main reason why our country absorbs foreign investment." "An official from the Ministry of Commerce, who declined to be named, said in an interview with the reporter. The official believes that as the crisis moves from the financial sector to the real economy, TNCs will reduce their investment in developing countries, and manufacturing investment in developing-country markets will be even withdrawn, with significant changes in international capital flows. Of course, some experts believe that a variety of factors lead to China's investment in the cost advantage is relatively weak. For example: 2008 "Two Taxes in unity" makes foreign-funded enterprises no longer enjoy the "supranational treatment"; The implementation of the labor contract law increases the cost of employment; some neighboring countries, such as Vietnam and Thailand, have increased their attractiveness to foreign investment in recent years. There are also experts pointed out that because the current investment market in China is not open enough, many important areas to attract foreign investment is not open, so that China's absorption of foreign investment in the quantity and quality is difficult to improve. Policy to stabilize foreign investment "to this end, the stability of foreign capital will become China's 2009 target of absorbing foreign investments." "China's 2008-2009 report on absorbing foreign capital," the Ministry of Commerce's Investment promotion Bureau said. It is revealed that from this February, the Ministry of Commerce began to investigate foreign investment in various places, and set out policies to open up openings in some areas to attract and stabilize foreign investment. As the policy items involved in different areas, in consultation with the Ministry of Science and Technology, the Ministry of Construction, the CBRC and other ministerial views, a policy proposal on stabilizing foreign investment has been reported to the State Council. The Ministry of Commerce and the NDRC are taking the lead in formulating a series of policies to keep the use of foreign capital stable and improve the structure of foreign investment, focusing on three aspects: first, the adjustment and upgrading of industrial structure, focusing on encouraging foreign investment in High-tech industries, energy conservation and environmental protection industries and modern services; second, Further decentralization of approval authority for foreign investmentThird, improve the legal environment, institutional environment and service conditions of foreign investment. At the same time, our country will further improve the investment environment, improve the regional distribution of foreign capital, further implement fiscal and taxation policies, promote investment facilitation, reduce logistics costs, take the Midwest National economic and technological development zone as the carrier to further promote industrial transfer, innovate the use of foreign capital, and exert foreign mergers and acquisitions promotion function of industrial structure upgrade. With the introduction of the above measures, as well as the series of measures adopted by the State in response to the financial crisis, we do not rule out a "forward and ascending" curve in 2009. In the opinion of the Ministry officials, China's attracting foreign capital in 2009 faces both challenges and opportunities. The fall in foreign investment does not mean that China's economy has lost its allure, on the contrary, the Chinese economy has shown greater competitiveness in the global financial crisis. The absorption of foreign investment is not a negative impact on China's economy, but it should be seen that the absorption of foreign investment has provided the best opportunity for China's economic restructuring. Mei Xinyu, deputy researcher of the Institute of International Trade and Economic Cooperation of Ministry of Commerce, interviewed by our correspondent that foreign investment declined, not all bad. Due to China's investment environment norms, some sweatshops and large polluters can not be transferred, due to China's legal environment norms, the combination of two taxes, a lot of fake foreign capital to restore the original. There are also a number of foreign companies in competition but domestic enterprises, closed the door to leave. such as Electrolux in Changsha has a wholly-owned refrigerator production plant, the original purchase of Italian electrical appliances, the results of the competition in Electrolux but domestic electrical enterprises, successive losses, coupled with the impact of the global financial crisis, Electrolux recently announced the closure of the plant, the global refrigerator production will be transferred to Australia. UNCTAD's 2009-2011 World Investment Outlook survey shows that China remains the most attractive host country for investment. The American Chamber of Commerce in China recently announced that more than 80% per cent of U.S. companies surveyed are optimistic about the prospects for the next 5 years in China and that 73% will expand their investment in the country. A recent survey by the U.S.-China National Trade Commission also showed that 88% of the respondents were profitable in China, 81% per cent of earnings in China were above or equal to global profit margins, and 85% preferred the company's overseas business. According to UNCTAD research, some positive factors in the 2009 will revitalize foreign direct investment, including investment opportunities from low asset prices and industrial restructuring, the relatively high financial resources of emerging countries and oil exporters, and the rapid expansion of new energy and environmental industries, And the adaptability of multinational companies is relatively good. Many fast-growing industries also show promising investment prospects, such as the Life sciences industry, agri-food industry, new materials, information and communication technologies, energy and environmental products. Many multinationals still adhere to their internationalization strategy, which is an important signal of future FDI growth. In view of this, there are still many opportunities for China to attract foreign investment.
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