2015年5月13日星期三

Chinese welcoming investment climate for foreign investment


According to <Global investment trends monitor>, China absorbed 128 billion us dollars foreign capital in 2014, becoming the worlds largest foreign capital inflow country. Actually, China has occupied No.1 largest foreign capital inflow country in developing countries for 23 years.  

Statistics from The Ministry of Commerce shows that, 5861 foreign invested companies were set up in the first quarter of 2015, increased 22.4% year-on-year. The actual use of foreign capital was 214.57 billion RMB, increased 11.3% year-on-year (bank, securities, insurance fields are not included). According to < China business survey in 2015> of the American chamber of commerce in shanghai, 73% and 75% respondents had made profit or revenue growth in China in 2014. 67% respondents plan to expand investment in 2015.

However, the saying about the large amount of withdrawal of foreign investment is spreading. Speaker of the Ministry of Commerce Danyang Shen analyzed that the saying is related with the changes of foreign investment structure. The first significant change was the amount of foreign capital China’s service industry absorbed increased from 24% in 2001 to 55.4% in 2014. While at the same time, manufacturing industry’s use of foreign capital decreased, which made some foreign manufacturing companies adjust their business in China. But this did not lead to large amount of foreign investment withdrawal.

In fact, Chinas attraction for foreign investment will be stronger in the future. In April, Guangdong, Tianjin and Fujian officially opened free trade zone, and the area of Shanghais free trade zone was expanded. Shouwen Wang of the Ministry of Commerce introduced that four free trade zone share the same negative list and foreign investors and their investment will be treated equally as Chinese investors.
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