The "Action Plan for Stabilizing Foreign Investment" was recently released. What signals does it convey? What is the current situation regarding attracting and utilizing foreign investment? What are the next steps? The State Council Information Office held a regular policy briefing to provide relevant information.

Ensure that all measures are implemented and effective during the year

Vice Minister of Commerce and Deputy International Trade Representative Ling Ji stated that the "Annual Action Plan for Stabilizing Foreign Investment" has several prominent features: it releases a positive signal for further opening up, increases policy support, actively promotes foreign investment, and effectively addresses the concerns of foreign enterprises. "The action plan clearly requires that all measures will be implemented and effective by the end of the year, which fully demonstrates the Chinese government's confidence and determination to maintain high-level openness and vigorously attract foreign investment."

The action plan proposes to expand pilot openings in sectors such as telecommunications, healthcare, and education. Yao Jun, Director of the Planning Department of the Ministry of Industry and Information Technology, stated that by the end of the year, several foreign enterprises have been approved to operate telecommunications businesses in China. In the same year, the Ministry of Industry and Information Technology, in collaboration with relevant departments, clarified the removal of foreign equity restrictions on multiple businesses including internet data centers in pilot areas such as Beijing, Shanghai, Hainan, and Shenzhen. Currently, dozens of foreign enterprises are actively applying to participate. The next step for the Ministry of Industry and Information Technology is to accelerate the advancement of pilot opening initiatives.

The action plan is clear: revise and expand the catalog of industries that encourage foreign investment, and research and formulate policy measures to encourage reinvestment by foreign enterprises within the country. Hua Zhong, the head of the Department of Foreign Investment and Overseas Investment at the National Development and Reform Commission, stated that the new version of the encouragement catalog will be released as soon as possible through the appropriate procedures. The new catalog will focus on adding entries in advanced manufacturing, modern services, high technology, energy conservation, and environmental protection. It will also encourage more foreign investment in the central and western regions and the northeastern areas of the country.

When discussing the policy to encourage foreign-invested enterprises to reinvest domestically, Hua Zhong mentioned that the policy formulation process has already begun. The preliminary considerations are to enhance the convenience of domestic reinvestment for foreign-invested enterprises by simplifying the procedures for handling related matters, improving financial services, and optimizing project filing management, thereby further facilitating the reinvestment channels for enterprises. Additionally, efforts will be made to strengthen the service guarantee for domestic reinvestment by foreign-invested enterprises, including optimizing the allocation of various production factors, reinforcing the support of task forces for major foreign investment projects, and enhancing full-process services for projects, to provide comprehensive support for eligible reinvestment projects.

In optimizing the national comprehensive pilot demonstration for the expansion and opening-up of the service industry, Zhu Bing, Director of the Foreign Investment Administration Department of the Ministry of Commerce, stated that as of now, the pilot demonstration has undergone years of innovative exploration, with its implementation scope expanding to several provinces and cities across the country, resulting in numerous innovative achievements being replicated and promoted nationwide. In the past year, the service industry in these provinces and cities absorbed $XX billion in foreign investment, accounting for approximately XX% of the total foreign investment absorbed by the national service industry. The Ministry of Commerce will actively promote the optimization and enhancement of the pilot demonstration work, accelerate the pace of pilot implementation, expand the geographical scope of the pilot, broaden the autonomous opening in key areas, continuously advance institutional opening, and strengthen the replication and promotion of innovative achievements.

Stabilizing foreign investment still has a solid foundation

Ling Ji introduced that in [specific month and year], the year-on-year decline in China's actual utilization of foreign investment narrowed compared to the previous year, but it still showed a downward trend. The main reasons are the current global downturn in cross-border direct investment, the still severe and complex external environment, and the impact of various factors such as changes in domestic related industries. As a result, some multinational companies have actively adjusted their investment layouts.

It is also important to note that the actual utilization of foreign capital in the month increased by .% compared to the same month last year, with the industrial structure of investment continuously optimizing and the sources of investment becoming more diversified. "China's vast market, efficient industrial and supply chain systems, and continuously improving innovation environment provide excellent development conditions and fertile ground for multinational companies to invest in China, ensuring a solid foundation for stabilizing foreign investment," said Ling Ji.

The "2023 Business Environment Survey Report" released by the American Chamber of Commerce in China shows that nearly % of consumer industry respondents expect to increase their investment in China this year; the report from the German Chamber of Commerce in China indicates that % of the surveyed companies plan to continue their operations in China, with more than half planning to increase their investment in the next two years. "These figures reflect the willingness and confidence of multinational companies to continue investing and deepening their presence in China," said Ling Ji.

Foreign-invested enterprises in China contribute nearly a certain percentage of employment, one-seventh of tax revenue, about one-third of imports and exports, and half of the exports of mechanical and electrical products and high-tech products. Ling Ji stated that attracting foreign investment is an indispensable force for China to build a new development pattern, provides important support for the construction of a modern industrial system, and helps promote the formation of new quality productivity.

expand high-level opening to the outside world

The National Development and Reform Commission (NDRC) has announced that in the coming year, it will promote the establishment of a higher-level open economic system, continue to support foreign enterprises in investing and expanding their presence in China. Specifically, the NDRC will systematically plan to steadily expand institutional openness, formulate and implement specific supportive policies and measures to stabilize foreign investment, enhance the role of development zones as platforms for attracting investment, and strengthen service guarantees for foreign investment. In collaboration with relevant departments, the NDRC will actively align with high-standard international economic and trade rules in areas such as property rights protection, industrial subsidies, and environmental standards, aiming to achieve compatibility and integration of rules, regulations, management, and standards. It will also orderly promote the expansion of autonomous openness in commodity markets, service markets, capital markets, and labor markets, and increase unilateral openness to the least developed countries.

Foreign enterprises are a significant force in advancing new industrialization. In the past year, China has completely lifted restrictions on foreign investment access in the manufacturing sector, with actual foreign investment in manufacturing exceeding billions of yuan, and the proportion of foreign investment in high-tech manufacturing reaching a certain percentage. Yao Jun stated that the next step for the Ministry of Industry and Information Technology is to deepen industrial technological innovation cooperation, share opportunities in digital and green development, leverage the role of industrial parks and clusters in stabilizing foreign investment, and continue to provide service guarantees for foreign enterprises.

市场监管总局信用监督管理司司长周卫军表示，市场监管总局将完善外商投资授权登记体制，持续健全特殊食品注册境外核查常态化工作机制；深化外资企业年报“多报合一”改革，切实解决企业年报“多头报、重复报”问题；深入贯彻《公平竞争审查条例》；有效解决多头检查、重复检查、随意检查的问题，切实减轻外资企业的迎检负担；加大涉外商投资知识产权保护力度；深入推进全国商业秘密保护创新试点。（记者唐诗凝、谢希瑶） Statement: Xinhua Finance is the national financial information platform constructed by Xinhua News Agency. Under no circumstances does the information released by this platform constitute investment advice.

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