Na­tion con­tin­ues to make progress in open­ing up to for­eign in­vest­ment

China Daily (Latin America Weekly) - - Front Page -

NOW IS THE TIME to in­vest in China not with­draw cap­i­tal from the coun­try, Wu Jian­min, pres­i­dent and CEO of East West Bank, wrote in ar­ti­cle pub­lished by 21st Cen­tury Busi­ness Herald. Ex­cerpts:

China has made sub­stan­tial progress in open­ing up its market to for­eign in­vest­ment. It has em­braced a “neg­a­tive list” model in its ad­min­is­tra­tion of for­eign cap­i­tal, and the list has be­come shorter year by year — the num­ber of in­dus­tries that for­eign cap­i­tal can­not in­vest in de­creased from 93 in 2016 to 63 last year.

Some pre­vi­ously taboo sec­tors, such as elec­tric ve­hi­cle and air­plane man­u­fac­tur­ing, some fi­nan­cial ser­vices and agri­cul­tural in­dus­tries, are now ac­ces­si­ble to for­eign in­vestors. If China can keep the mo­men­tum of its open­ing-up, it will fi­nally demon­strate the due pos­ture that the world’s sec­ond-largest econ­omy should have.

Al­though some for­eign busi­nesses are still doubt­ful of the prac­ti­cal ef­fects of the im­ple­men­ta­tion of th­ese poli­cies, China will be able to dis­pel any doubts by match­ing its words with deeds.

And many of the new open­ing-up poli­cies have been wel­comed with an im­me­di­ate vote of con­fi­dence in them.

De­spite the trade fric­tions, the United States’ di­rect in­vest­ment in China in­creased more than 10 per­cent year-on-year from Jan­uary to Septem­ber,

ac­cord­ing to the Min­istry of Com­merce data. In other words, US en­ter­prises have in­creased their in­vest­ment in the coun­try, show­ing their be­lief in China as an in­vest­ment des­ti­na­tion.

Con­struc­tion work on Tesla’s $2 bil­lion elec­tric car plant has com­menced in Shang­hai, when com­pleted it will be able to pro­duce half a mil­lion ve­hi­cles a year, and Exxon Mo­bile an­nounced in Septem­ber it plans to in­vest bil­lions of dol­lars to build a petro­chem­i­cal fac­tory in Guang­dong prov­ince as China now al­lows for­eign in­vestors to con­trol pro­duc­tion fa­cil­i­ties in the in­dus­try. Ger­many’s BMW and BASF are also in­creas­ing their in­vest­ment in China and have set up hold­ing com­pa­nies in China. And many fi­nan­cial com­pa­nies from the US are al­ready act­ing on the Chi­nese gov­ern­ment’s prom­ise of let­ting for­eign com­pa­nies to in­crease their shares from 51 per­cent to 100 per­cent in three years in as­set man­age­ment and se­cu­ri­ties com­pa­nies by tilt­ing their re­sources to China.

China has shown its re­solve to con­tinue to ad­vance re­form and open­ing-up, which can con­stantly im­prove do­mes­tic busi­ness en­vi­ron­ment, and both for­eign play­ers and the Chi­nese econ­omy will ben­e­fit from it.

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