SCIO briefing on China's efforts to accomplish economic and social development goals for 2020
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E-mail China.org.cn, May 27, 2020
China News Service:
We noticed that a large number of large-scale foreign investment projects were launched in China since last year. What are the prospects for China to attract foreign investment this year amid the pandemic? Will there still be large projects implemented in China? Thank you.
Ning Jizhe:
As China opens its market and improves its investment environment, it is seeing an increase in large-scale foreign investment projects, which has become a prominent feature in use of foreign capital in the past two years. For example, during last year, Samsung's $15-billion flash memory chip project (phase II) in Xi'an completed plant construction, and BASF's $10-billion petrochemical project in Zhanjiang was officially launched. Tesla's $7-billion super factory project in Shanghai was built and went into production and delivered products to customers in the same year. During this year, BMW Brilliance's third factory project in Shenyang held a ceremony marking the start of the construction on April 1. ExxonMobil's petrochemical complex project in Huizhou held a "cloud construction" ceremony at three localities in the two countries on April 22. These all play a demonstrative and leading role in stabilizing foreign investment and promoting opening up. There will be a number of major foreign investment projects successively implemented this year, involving electronic information, new materials, advanced manufacturing and other fields. The NDRC will promote opening up, and maintain stable foreign investment, industrial chains, and supply chains in accordance with the requirements in the government work report, so as to achieve the "four furthers":
First, further promoting the implementation of major foreign investment projects. In addition to advancing the previous 18 projects in three batches, the fourth batch will be launched this year. We will coordinate services and offer support in land use, environmental impact assessment, planning, energy consumption and other aspects. We will increase the reserves of various projects in advanced manufacturing and production-oriented service industries. We will establish and improve the local leadership mechanism for major foreign investment projects, so as to comprehensively improve services. We will also facilitate the exchanges of international economic and trade personnel of some projects through a "fast-track lane" and charter flights, so as to support a faster implementation of the projects. Over 1,000 South Korean technicians working in China have resumed their work through charter flights. The efforts we have made have worked.
Second, further shortening the negative list for foreign investment. We will release the 2020 version of the negative list. The number of items in the negative list has already been cut to 40 over the past three years from 93. We will continue shortening it in accordance with the requirements in the government work report, further open up the service industry, manufacturing and agriculture, continue experiments in the pilot free trade zones, and fully implement the negative list management system. No separate restrictions on foreign investment beyond the list will be imposed. The NDRC has organized the removal of dozens of restrictions set by some organizations and government departments to put the foreign investment law into practice.
Third, further encouraging foreign investment. We will also release the 2020 catalogue of industries in which investment is encouraged. More items will be added to promote higher-quality manufacturing and tap into the potential of the country's central, western and northeastern regions in accepting relocated industries, so that more foreign investment can be covered by the preferential tax policies.
Fourth, further improving the foreign investment environment. Taking the opportunity of implementing the foreign investment law and its implementation regulation, we will improve systems of investment promotion, protection and management, improve foreign investment services, comprehensively promote equal treatment of Chinese and foreign enterprises, protect the legitimate rights and interests of foreign investors in making investment, and promote consistent and coordinated law enforcement in different localities. We will also strengthen exchanges with foreign chambers of commerce and foreign enterprises, and continue addressing problems encountered by foreign enterprises in China in resuming work and production. Thank you.
