In steady pursuit
A series of new policies recently released to attract foreign investment demonstrates China’s aim to diversify foreign direct investment, channel money into the central and western regions, and encourage environmentally-friendly and high-tech industries to set up onshore. However, the rules are fairly general and more legislation will be needed for proper implementation
Issue: July/August 2010
Keywords (click to search):
foreign direct investment
FDI
Han Kun
high-tech
green
west
On April 6 2010, the State Council of China issued the Several Opinions of the State Council on Further Improving the Work of Utilising Foreign Investment (Guo Fa [2010] No.9) (国务院关于进一步做好利用外资工作的若干意见) (the Opinion). The Opinion reiterated China’s policy of attracting foreign investment and specified certain new policies in favor of foreign investment in China.
By the end of 2009, the Chinese government had already approved 683,000 foreign-invested enterprises, and the foreign direct investment amount had achieved US$945.4 billion. The industrial production revenue, tax collections and export revenue generated by foreign-invested enterprises (FIEs) respectively accounted for 28%, 22.7% and 55.9% of the total amount generated in the whole country in 2009. In addition, FIEs last year directly created 45 million job opportunities. FIEs without any doubt have become a crucial constituent of the Chinese economy. Meanwhile, the world-wide financial crisis has made the Chinese government further realize the pressure...
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