China sets out goals to attract more foreign investment

The Chinese government is to implement a number of measures to improve the country’s business environment and attract more foreign investment, according to a leading figure its top economic regulator.

Xiao Weiming, deputy secretary-general of the National Development and Reform Commission (NDRC), said China will further simplify institutional rules to create a more unified national market.

“We will actively and steadily advance reforms in key areas such as finance, taxation and statistics, including studying and improving local tax systems,” he said at a news conference in Beijing.

Meng Wei, director of the NDRC’s Department of Laws and Regulations, said it was important China created a law-based business environment suitable for international businesses, and called for effective measures to address key issues they face.

She said the measures include eliminating various unreasonable restrictions to better uphold fair competition, improving top-level design to better protect legal rights and facilitating cross-border investment to enhance institutional opening-up.

Addressing foreign enterprises’ concerns about market access and industrial co-operation, Meng said the country will introduce measures to attract and utilize foreign investment more effectively. Action will also be taken to remove restrictions on foreign investment in the manufacturing sector.

NDRC data shows, as of the end of January, some 1,591 overseas private sector firms had participated in local government projects in China worth 1.98 trillion yuan ($275 billion) in all.

The figures also show that at the end of 2023 there were 184 million business entities in all, including over 32 million newly established ones. More than 10 million new companies were registered last year, up around 16% on 2022.

Ren Duanping, an official with the State Administration for Market Regulation, said the government will take further steps to end unjustified charges levied on businesses as well as rectify unfair market competition and market intervention behaviour.

The message that China is open for international business, and welcomes talent from all over the world, was reinforced by Chinese Premier Li Qiang in a speech he made in Beijing.

Li made the remarks at the 2023 Chinese Government Friendship Awards event, where he met representatives and experts from foreign organisations that work in China.

The event was attended by experts from Switzerland, Germany, Brazil, the Republic of Korea, Thailand, Russia and other countries.

Li commended the important role of foreign experts in promoting China’s economic and social development and people-to-people exchanges.

Li expressed hope that foreign experts would continue to participate in China’s development, and continue to serve as a bridge between China and the rest of the world.

The Chinese government will continue to improve relevant policies, further facilitate personnel exchanges, strengthen the protection of intellectual property rights and other rights and interests, and create a better environment for foreign talents to work and live in China, Li said.

The Friendship Award commends foreign experts who have made outstanding contributions to China’s reform and development. Fifty foreign experts received the 2023 Chinese Government Friendship Award.

 

Multinational firms ramp up investment in China

Multinational firms will continue to increase their investment in China this year, with the country’s huge domestic market and increasing innovation bolstering their confidence, according to business leaders.

They are optimistic because they anticipate that China’s growth will outpace that of most major economies this year.

Zhang Wei, vice-president of the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said that foreign investors are increasingly valuing China’s modern industrial infrastructure, innovative ecosystem and access to research talent.

According to a new survey from the China Council for the Promotion of International Trade, more than 80% of foreign companies expressed satisfaction with China’s business environment in 2023, while more than 90% found the Chinese market appealing.

The survey, conducted by the country’s top foreign trade and investment promotion agency, also showed that nearly 70% of these companies expressed optimism about the outlook for China’s economy for the next five years.