BEIJING: China’s latest supportive policies will further incentivize foreign companies to expand their operations in the country, government officials and multinational corporation executives said on Monday.
Given the slowdown in global economic recovery and the decline in cross-border investments, they said these policy measures will promote China’s high-quality opening-up by using the advantages of the country’s huge and lucrative market, optimize the attraction and utilization of foreign investment, and establish a business environment that is market-driven, legally structured and globally integrated.
Aimed at improving the environment for foreign investment and attracting more global capital, the State Council, China’s Cabinet, issued a 24-point guideline on Sunday.
The government’s commitment to enhancing the environment for foreign investment includes six key areas, such as ensuring the effective utilization of foreign investment and guaranteeing equal treatment of foreign-invested enterprises and domestic enterprises.
Addressing a news conference in Beijing, Chen Chunjiang, assistant minister of commerce, said these policies will support the operations of foreign companies in China, guide their development and deliver timely services.
“The Ministry of Commerce will strengthen guidance and coordination with relevant government branches on policy promotion, create a more optimized investment environment for foreign investors, and effectively boost their confidence,” Chen said.
Further steps will be taken to enforce the requirement of treating domestic and foreign-funded enterprises equally in government procurement activities, said Fu Jinling, head of the economic construction department of the Ministry of Finance.
This is aimed at legally safeguarding the equal participation rights of domestic and foreign-funded businesses in government procurement activities, he noted.
Eddy Chan, senior vice-president of United States-based FedEx Express, said his company is encouraged by these fresh guidelines, as they will help improve the level and quality of trade and investment cooperation.
“Looking ahead, we are confident in China and will continue to contribute to enhancing business and trade between the country and the world,” said Chan.
Amid a slowing global economic growth, foreign direct investment in China amounted to 703.65 billion yuan ($96.93 billion) in the first half of 2023, a decline of 2.7 percent year-on-year, data from the Ministry of Commerce showed. –The Daily Mail-China Daily news exchange item
