Push aims to entice foreign investment
By Wang Yanlin |
August 21, 2010, Saturday
|
Print Edition
Print Edition
COUNTERING complaints that the investment climate is worsening, China has unveiled new policies designed to encourage foreign investment, including discounts of land rents and access to research funds.
According to the new rules published on the website of the State Council, China's Cabinet (www.gov.cn) late Thursday, China will encourage foreign investment into industries of advanced manufacturing, high-technology, modern services, renewable energy and environment protection.
In these sectors, land-intensive foreign investment projects can apply for discounts of up to 30 percent for renting or buying space for factories.
Foreign investors can also report their high-tech projects to the Ministry of Science and Technology, the Ministry of Finance or the State Administration of Taxation to ask for grants of national research funds.
Foreign investors are also being encouraged to join with Chinese firms on research and development. They can get further breaks by expanding eco-friendly businesses into China's central and western areas.
Multinational companies are welcome to set up their regional headquarters, R&D centers, sourcing centers and clearance and settlement centers in the country, according to the new rules.
The central government will support qualified foreign firms to issue yuan-denominated corporate bonds and mid-term bills, and encourage them to be more involved in restructuring and acquiring Chinese firms, in order to broaden their financing and investment channels.
The effort to encourage foreign investment comes even as China's FDI has climbed for 12 consecutive months despite the global financial crisis.
Foreign direct investment in China expanded 29 percent from a year earlier to US$7 billion last month, according to the Ministry of Commerce. It followed a jump of 40 percent in June, which pushed the total FDI value in the first seven months to US$58 billion.
China has been making continuous efforts to improve the environment for foreign investment, and the playing field is level for all investors, Liu Yajun, director of the Department of Foreign Investment Administration under the Ministry of Commerce, said last month.
He made the remarks after some foreign investors demanded fairer treatment -- the same as that for domestic companies .
China's top leadership, including Premier Wen Jiabao, disputed the complaints last months by the heads of BASF AG and Siemens AG that investment conditions for foreign companies were getting worse.
According to the new rules published on the website of the State Council, China's Cabinet (www.gov.cn) late Thursday, China will encourage foreign investment into industries of advanced manufacturing, high-technology, modern services, renewable energy and environment protection.
In these sectors, land-intensive foreign investment projects can apply for discounts of up to 30 percent for renting or buying space for factories.
Foreign investors can also report their high-tech projects to the Ministry of Science and Technology, the Ministry of Finance or the State Administration of Taxation to ask for grants of national research funds.
Foreign investors are also being encouraged to join with Chinese firms on research and development. They can get further breaks by expanding eco-friendly businesses into China's central and western areas.
Multinational companies are welcome to set up their regional headquarters, R&D centers, sourcing centers and clearance and settlement centers in the country, according to the new rules.
The central government will support qualified foreign firms to issue yuan-denominated corporate bonds and mid-term bills, and encourage them to be more involved in restructuring and acquiring Chinese firms, in order to broaden their financing and investment channels.
The effort to encourage foreign investment comes even as China's FDI has climbed for 12 consecutive months despite the global financial crisis.
Foreign direct investment in China expanded 29 percent from a year earlier to US$7 billion last month, according to the Ministry of Commerce. It followed a jump of 40 percent in June, which pushed the total FDI value in the first seven months to US$58 billion.
China has been making continuous efforts to improve the environment for foreign investment, and the playing field is level for all investors, Liu Yajun, director of the Department of Foreign Investment Administration under the Ministry of Commerce, said last month.
He made the remarks after some foreign investors demanded fairer treatment -- the same as that for domestic companies .
China's top leadership, including Premier Wen Jiabao, disputed the complaints last months by the heads of BASF AG and Siemens AG that investment conditions for foreign companies were getting worse.
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