20 measures to attract foreign capital
The State Council, China’s Cabinet, recently issued a document outlining 20 measurers to attract more foreign capital.
For years, foreign investment has played an active role in China’s economic development and promoted its foreign trade, technological progress and industrial upgrading. China’s huge market also provides broadspace and opportunities for foreign companies.
In recent years, however, the transfer of the operations of some foreign enterprises, especially manufacturing enterprises, to other countries has caused concern. By providing a fairer and more convenient investment environment the government hopes to attract more investments in China by foreign enterprises.
For instance, the document proposes that foreign-invested enterprises enjoy the same policies and measures as domestic enterprises in the government’s Made in China 2025 strategy. Moreover, the manufacturing industry will be further opened-up to foreign investment.
Foreign capital access restrictions in fields including the manufacturing of rail transportation equipment and motorcycles and the processing of fats and oil will be canceled.
Facing criticism that the business environment for foreign enterprises in China is deteriorating, the document advocates implementing the same standards for business certification and broadening the financing channels for foreign enterprises in the country.
Officials of the National Development and Reform Commission, the top economic planner, pointed out the measures aim to improve China’s environment for foreign enterprises’ development while the country is undergoing structural adjustment of its industries.