Negative list to be shortened for investors

By LIU ZHIHUA/OUYANG SHIJIA | China Daily | Updated:Jun 18, 2021

China's unwavering efforts to deepen reform and opening-up are set to\r\n provide more business opportunities to foreign investors and contribute\r\n further to world economic recovery, according to experts and business \r\nleaders.

Their comments came after the country's top economic planner \r\nannounced on June 17 that China will further shorten the negative list \r\nfor foreign investment this year, as part of ongoing efforts to \r\ncontinuously open its vast domestic market to global investors.

Meng Wei, a spokeswoman for the National Development and Reform \r\nCommission, said the country is speeding up the formulation of the \r\nnegative list for 2021, which will promote opening-up in the service \r\nsector in a bid to foster high-quality economic development.

A negative list refers to special administrative measures for the access of foreign investment in certain industries or areas.

"We will open more sectors of the economy on a larger scale and at a \r\ndeeper level, to develop a new system promoting a higher-standard open \r\neconomy," Meng said at a news conference in Beijing on June 17.

The country will continuously support the implementation of major \r\nforeign investment projects, especially in sectors such as advanced \r\nmanufacturing and high-tech, and will encourage foreign investors to \r\nparticipate in the country's high-quality development of manufacturing, \r\nnew infrastructure construction and innovation-driven growth, she said.

To provide foreign investors with a fairer, more transparent and \r\nsound business environment, China will improve post-establishment \r\nnational treatment for all foreign investors, treating domestic and \r\nforeign enterprises equally in accordance with the law in areas such as \r\ngovernment procedure, certification and the setting of standards.

Against the backdrop of a sharp decline in global cross-border direct\r\n investment, there has been significant growth in foreign investment in \r\nChina.

The nation's actual use of foreign investment grew 35.4 percent \r\nyear-on-year to reach 481 billion yuan ($74.78 billion) in the first \r\nfive months of this year, and had increased by 30.3 percent from the \r\nsame period in 2019, according to the Ministry of Commerce.

The number of newly established foreign-funded enterprises surged \r\n48.6 percent year-on-year to 18,497, up by 12.4 percent from the same \r\nperiod in 2019.

The country's successful reining in of COVID-19 has made it a safe \r\nhaven for foreign investment and a growth engine for global economic \r\nrecovery, according to experts.

Zhang Fei, associate director of the Institute of Foreign Investment \r\nof the Chinese Academy of International Trade and Economic Cooperation, \r\nattributed the growth in foreign investment in China to factors such as \r\nexpanding foreign investors' access to more sectors and regions, as \r\nreflected in the shortening negative list, and the growing number of \r\npilot programs in pilot free-trade zones, free trade ports and \r\ncomprehensive pilot zones for the service industry.

With COVID-19 largely under control, efforts by governments at \r\ndifferent levels in the nation to support major foreign investment \r\nprojects and facilitate foreign investors, the implementation of the \r\nForeign Investment Law to protect the legitimate rights and interests of\r\n foreign investors, and the pursuit of a new dual-circulation \r\ndevelopment pattern that offers increasing opportunities for \r\nforeign-funded enterprises in China, also helped to attract foreign \r\ninvestment, according to Zhang.

Leading executives of multinational companies have also expressed \r\ntheir long-term confidence in China, while speaking highly of the \r\nnation's contribution to the global economy.

"China is a major engine for world economic growth. As an important \r\npart of the global industry and supply chains, China's market is \r\ncontinuously opening up to the rest of the world," said Leon Wang, \r\nexecutive vice-president of UK-based pharmaceutical company AstraZeneca \r\nand president of AstraZeneca China.

"This plays a very big role in connecting global markets and sharing \r\nopportunities. It also makes China the No 1 destination for investment \r\nby many multinationals."

Jiang Wei, president of Bayer Group's China branch, said as the world\r\n faces a huge public health crisis, open cooperation is particularly \r\nimportant to every country's success.

"Bayer is very pleased to see how China continues to build a \r\nmarket-oriented and legitimate international business environment, and \r\ntreats all types of companies equally," he said.

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