What measures will be taken to attract foreign investment projects this year? Ningji Zhes Response

 What measures will be taken to attract foreign investment projects this year? Ningji Zhes Response

Ning Ji zhe:

Your question is very important. Foreign capital is an important part of Chinas economy. In 2018, against the background of slow recovery of world transnational investment and complex and changeable international trade relations, Chinas utilization of foreign capital reached a new record, reaching 135 billion US dollars (excluding banking, securities and insurance), an increase of 3%. At the same time, the number of newly established foreign-invested enterprises has increased by nearly 70%. The Prime Minister also pointed out in the Government Work Report yesterday. Therefore, China continues to be a hot spot for transnational investment.

In 2019, we will adhere to the concept of open development, adhere to the basic state policy of opening to the outside world, adhere to the development of a higher level of open economy, and at the same time fully implement the management system of national treatment before admission plus negative list, we will also add positive encouragement and national treatment after admission to build a better business environment for foreign investment. What is this concept? Negative list plus positive encouragement, national treatment before admission plus national treatment after admission.

One is to reduce the negative list. More open measures will be introduced in the fields of agriculture, mining, manufacturing and service industries to allow more areas to be operated solely by foreign investment. At present, the work of revising the negative list of foreign investment access has been initiated. On the basis of the considerable relaxation of market access last year, the negative list of foreign investment access will be further reduced this year, and the pilot test of expanding the opening-up in the FTA will continue.

Second, we should expand positive encouragement. This year, a new Catalogue of Industries Encouraging Foreign Investment will be issued to expand the scope of encouraging foreign investment and give full play to the role of foreign investment in the transformation and upgrading of traditional industries, the development of emerging industries and the coordinated development of regions. For encouragement projects, they will continue to enjoy tariff-free import equipment and preferential policies for industrial land use. In the western region, encouragement projects will continue to reduce the enterprise income tax by 15%.

Thirdly, national treatment is applied before and after admission. In conjunction with relevant departments and local governments, we will comprehensively clear up the access restrictions imposed on foreign investment in areas beyond the negative list of foreign investment access, and ensure that the standards of market access for foreign investment and domestic investment are consistent. That is to say, we will implement pre-admission national treatment for foreign investment. At the same time, we should promote fair treatment for foreign-funded enterprises in government procurement, standard-setting, industrial policy, science and technology policy, qualification licensing, registration, listing and financing, which is the national treatment after the entry of foreign capital.

Fourth, we should promote the facilitation of foreign investment. The problem you mentioned just now is to provide convenient services for foreign capital projects. We are working with relevant departments and local governments to simplify management procedures such as filing, and carry out major foreign capital project services and promotion work. At present, Shenyang Huachen BMW, Shanghai Tesla, Huizhou Basf, Huizhou Zhonghai Shell, Xian Samsung Flash Memory Chip, Jiashan Volkswagen Lithium Battery and other major foreign investment projects have been launched, of course, there will be a third batch. Mainly in the fields of new energy, advanced manufacturing, petrochemical and electronic information, land use, sea use, energy use, planning and other support will be given to speed up the progress of EIA approval, so as to play a demonstration role, guide local optimization of services, and further improve the degree of investment facilitation.

Fifth, we should protect the rights and interests of foreign capital according to law. The draft Foreign Investment Law, which will be considered at the second session of the 13th National Peoples Congress, establishes a system for the promotion and protection of foreign investment, clearly stipulates that the State shall protect the intellectual property rights of foreign investors and foreign-invested enterprises according to law, and shall not use administrative means to force the transfer of technology, which will surely provide more comprehensive and powerful legal protection for the rights and interests of foreign investment. After the legislation is passed, we will strictly comply with the implementation. Thank you.

Source: Responsible Editor of China Networks: Xun Jianguo_NN7379