On March 19, The General Office of the State Council issued the “Action Plan to Steadily Promote High-level opening up and make Greater efforts to Attract and Utilize foreign Investment” (hereinafter referred to as the “Action Plan”) and stressed that foreign investment is an important force to participate in the Chinese-style modernization and promote the common prosperity and development of China’s economy and the world economy. This is another stable foreign investment New Deal after the introduction of the “24 foreign investment” in August last year.

05701-A-0293    Specifically, the action Plan puts forward 24 measures in 5 aspects. Next, it will improve the management system of pre-establishment national treatment and negative list for foreign investment, completely cancel the restrictions on foreign investment access in the manufacturing sector, expand the catalogue of industries and lists of foreign investment projects to encourage foreign investment, and clean up behaviors and policy measures that violate fair competition. We will accelerate the resumption of international flights at key aviation hubs such as Beijing, Shanghai and Guangzhou, and actively promote the negotiation and implementation of high-standard economic and trade agreements.

We will further expand market access for foreign investment

According to the Statistical Bulletin of National Economic and Social Development in 2023, 53,766 newly established enterprises with foreign direct investment in 2023, an increase of 39.7 percent over 05701-A-0293    the previous year. The actual utilized foreign direct investment was 1,133.9 billion yuan, down 8.0 percent, or US $163.3 billion, down 13.7 percent.

On the issue of public concern about the development prospects of foreign companies in China, Li Chao, deputy director of the policy research office of the National Development and Reform Commission, responded at the briefing on the 2024 National Two Sessions held on March 18, from a global perspective, China has always been an important investment destination for multinational companies. Although there are some fluctuations in the scale of foreign investment attracted by China in 2023, from the “volume” point of view, the actual use of foreign investment is still more than 1.1 trillion yuan, at a historical high; From the “quality” point of view, China’s use of foreign investment structure continues to optimize, high-tech industries, manufacturing investment accounted for a further increase in 2022, the number of new foreign-funded enterprises increased by nearly 40%.

05701-A-0293   

According to the newly released action Plan, the scope of access for foreign investment will be further expanded. These include improving the management system of pre-establishment national treatment plus negative list for foreign investment, abolishing all restrictions on foreign investment access in the manufacturing sector, and continuing to open up the telecommunications, medical and other sectors. Expand the business scope of foreign financial institutions to participate in the domestic bond market; We will carry out trials of domestic investment by qualified overseas limited partners.

05701-A-0293    Wang Xiaohong, deputy minister of the Scientific Research Information Department of the China International Economic Exchange Center, told the 21st Century Business Herald reporter that the cancellation of the restrictions on the access of foreign investment in the manufacturing industry fully reflects China’s confidence in actively promoting high-level opening up, attracting multinational investment in the global manufacturing industry through the super-large-scale market, allowing multinational companies to share the dividends of the Chinese market, and playing the role of internal introduction and outreach of multinational companies. Stabilizing global industrial and supply chains.

05701-A-0293    At the same time, the Action Plan further expanded the list of industries and projects to encourage foreign investment. The national catalogue of industries encouraged by foreign investment gives more support to advanced manufacturing, new and high technology, energy conservation and environmental protection, and the catalogue of industries with advantages for foreign investment in the central and western regions gives more support to basic manufacturing, applicable technologies, and people’s livelihood and consumption. We will actively support foreign investment projects in the fields of integrated circuits, biomedicine, and high-end equipment to be included in the list of major and key foreign investment projects, and allow them to enjoy corresponding support policies.

Wang Xiaohong said that at present, China’s factor advantages have changed, and the focus and advantages of attracting investment in the future are advanced manufacturing. By expanding the scope of industries encouraging to attract foreign investment, advanced technologies, international high-end talents and advanced management methods of multinational companies can be introduced, and international cooperation can be promoted, which has positive significance for the structural transformation and upgrading of the manufacturing industry.