Home AsiaChina China Encouraging Foreign Investment

China’s State Council has recently issued a statement outlining its guidelines regarding further optimizing the foreign investment environment and intensifying efforts to attract foreign investments.

The guidelines urged to improve the overall balance between domestic and international situations and foster a world-class business environment that is market-oriented, law-based, and internationalized.

They also called for giving full play to the strengths of China’s enormous market, making more efforts in attracting and utilizing foreign investment and doing it more effectively to make contributions to promoting high-standard opening up and building a modern socialist country in all respects.

Under the guidelines, 24 specific measures in six aspects have been put forward, according to the State Council.

These aspects include improving the quality of foreign capital utilization, guaranteeing the national treatment of foreign-invested enterprises, strengthening the protection of foreign investment, improving the facilitation of investment and operation, increasing fiscal and tax support, and improving ways to promote foreign investment.

The statement also said that all regions are encouraged to adopt supporting measures in light of local conditions to enhance policy synergy.

The Ministry of Commerce should strengthen guidance and coordination with relevant departments on policy promotion, implement the policies and measures timeously, create a more optimized investment environment for foreign investors, and effectively boost foreign investment confidence. 

As China continues to facilitate communication between the government and foreign-invested enterprises, international companies are seeing tangible benefits and showing more confidence in their development prospects in China.

In its communications and dealings with foreign companies that have needs and concerns, Chinese authorities have always listened and adapted quickly to deliver the best outcomes, said Mirko Turrina, general manager of Goglio (Tianjin) Packaging Co., Ltd.

In May 2022, task forces designed specifically to serve the needs of foreign enterprises operating in China were established by the China Council for the Promotion of International Trade (CCPIT) at local levels across the country.

Last October, the task force in Tianjin reached out to Italian-funded food packaging enterprise Goglio Packaging to learn more about the company’s possible problems and needs. So far, the task force has assisted the firm in obtaining industrial product production licenses, as well as visas for senior-level foreign staffers, Turrina said.

The communication process is efficient, Turrina said, adding that it is “a powerful example of the commitment of the Chinese government to advance opening up and optimize the business environment.”

Playing a vital role in communication and coordination, the task forces have prompted relevant government departments to respond to or solve more than 5,700 appeals from foreign companies operating in China, according to the CCPIT.

Cargill, an agriculture and food company headquartered in the United States, is another foreign company that has benefited from this mechanism.

“In the process of regular two-way communication, the task force strives to help enterprises solve difficulties,” the company said, adding that it is actively expanding its business layout in China to meet the demands of Chinese consumers and contribute to the development of sustainable agriculture in the country.

The European Union Chamber of Commerce in China told Xinhua that the association has maintained close communication with personnel from the task forces, and received extensive support in the extension of preferential policies for foreigners to obtain subsidies.

The “bridge” built by the CCPIT between the government and foreign enterprises has provided timely and strong support for enterprises to cope with the impact of China-U.S. economic and trade frictions and the epidemic, said Liu Zhengfu, director of the research and development department of the council.

Explaining the working mechanism of the task forces, Liu said the task forces at local levels coordinate with corresponding government departments to solve the needs of enterprises. If the matters involve departments at a higher level, such problems will be reported to the CCPIT for further progress in seeking solutions. “Relevant departments are very supportive of the work,” Liu added.

A survey conducted earlier this year revealed that the vast majority of foreign-funded companies operating in China were satisfied with the country’s business environment.

Nearly 90 percent of the surveyed foreign-funded enterprises expressed satisfaction with the business environment concerning market access, tax payments, dispute settlement and promotion of market competition in China.

About 70 percent of the surveyed foreign enterprises were optimistic about the prospects of the Chinese market in the next five years, and more than 90 percent of the enterprises expressed their belief that the attractiveness of the Chinese market will either increase or remain unchanged, according to the survey.

Shayne Heffernan

You may also like


Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.