Attracting foreign capital is among China's vital channels in its participation in economic globalization, and China has for many years remained a developing country absorbing the largest amount of foreign direct investment. Currently, many new conditions characterized in new ways have emerged in China's efforts to attract foreign capital, with its robust economic development, and deepening reform and opening up to the outside world. Meanwhile, new opportunities and advantages have mushroomed in this regard.
China continues to be an ideal destination for foreign capital
The 2007 World Investment Report revealed that the ideal destinations with a global appeal for foreign capital were China and India, with East Asia; South Asia and South-east Asia are attracting more attention. The report suggested that China has taken the lead amid developing countries all along in absorbing foreign direct investment, despite the fact that the amount slightly dropped by 4 percent in 2006 as a result of a sharp increase in 2005.
Pan Biling, vice director of the foreign capital department at China's Ministry of Commerce, was quoted as saying that China remains strongly appealing to foreign capital for the following reasons: first, China's economy spearheads the world in its growth rate; and second, China has spared no efforts to improve its investment environment.
According to a report recently released by the globally well-known Anyong Accounting Firm, China has, for the first time, become the top destination for multi-national corporations, as much of its huge market is yet to be explored and developed. A great potential is yet to be tapped in its economic growth, and China is an emerging economy rife with innovation and animation.
Three main international opportunities help attract foreign capital
China's endeavors to appeal to foreign capital are also facing new opportunities and challenges brought about by the altered international environment. Firstly, China's economic status has risen in an unprecedented way. By absorbing foreign capital, China has been deeply integrated into the network of global production; and become indispensable to the global production system. China has now grown to be the number three trading country worldwide; and is expected to come out first in the future with its 774 goods ranking number one among exports.
Secondly, new opportunities can be found in cross-country investment. China's three important opportunities to escalate and sharpen its competitiveness to attract foreign money will come from the following spheres: the internationalization in research and development of multi-national corporations, outside services contracts, and high-end manufacturing industries moving to China.
Compared with other developing countries, China is the leader of internationalization in R and D of multi-national corporations; but in the sphere of outside services, China still lags behind, say, India and Ireland.
New advantages to attract foreign capital
At present, China has entered into a new era in attracting foreign investment, and some new advantages in this aspect also loom large. Shi Guangsheng, Chairman of the China Association of Enterprises with Foreign Investment, has made a systematic analysis as follows:
Firstly, the focus will shift in absorbing foreign investment from quantitative growth to quality escalation.
With the rapid development of China's economy, preferential policies carried out to attract foreign capital are being transformed into policies aimed at safeguarding a fair market environment. China's is now stepping up the optimization of the industrial structure to ensure that enterprises with foreign investment will enjoy in-depth development in China. In fact, technology- and capital-intensive industries have been the top priority for foreign investment.
Secondly, the legislative environment to attract foreign investment is maturing and opening.
Since its entry into WTO, China has made every effort to fulfill its promises by revising and enacting around 3,000 laws, regulations and specific rules; establishing the legal system in accordance with WTO rules; and enhancing law enforcement and policy transparency. Meanwhile, China has enacted a relatively comprehensive system to protect Intellectual Property Rights; and enacted and improved relevant laws and regulations to provide legal protection for the administration according to the law and management abiding to the law.
Thirdly, with China's reform implemented in both scope and depth, enterprises with foreign investment can meet with more likelihood to explore the market.
China's has in recent years staged a number of policies which encourage the development of its western region; promote the rise of its central parts; and revitalize its northeastern industrial bases. They boost ongoing reform and create a sound environment for foreign investment to enter into China's inland areas.
Fourthly, China's goal to build up a well-off, harmonious society can open up a broad vista for the sustainable development of enterprises with foreign capital.
On the basis of streamlining structure and beefing up efficiency, and assisted by the causes of energy consumption abatement and environmental protection, China is expected to double its per capita GDP in 2020 compared with 2000 through its efforts to push forward the comprehensive construction of a harmonious society. The increasing rise in income and spending power will catalyze a massive consumer market, which will open up a broad vista for enterprises with foreign investment to enjoy sustainable development in China.
By People's Daily Online
|
Comment
Tell A Friend
Print Format
Save Article