The Foreign Investment Law has been implemented for more than half a year. How effective is it to protect market entities including foreign companies? Data undoubtedly has the most say.
“From January to June 2020, the country’s actual use of foreign capital was 472.18 billion yuan, a year-on-year decrease of 1.3% (excluding banking, securities, and insurance, the same below). Among them, in June, the country’s actual use of foreign capital was 117 billion yuan, a year-on-year decrease Increased by 7.1%; the second quarter achieved a year-on-year growth of 8.4%, a significant callback from the first quarter (down 10.8%), and foreign investment expectations and confidence have stabilized and improved.” Recently, the Ministry of Commerce spokesperson Gao Feng said at a regular press conference of the Ministry of Commerce .
Xiao Benhua, deputy dean of the Free Trade Zone Research Institute of Shanghai Lixin University of Accounting and Finance, said in an interview with a reporter from Securities Daily that in the first half of this year, under the influence of the epidemic, China experienced a V-shaped rebound in the absorption of foreign investment. It has been recognized by foreign investors and foreign companies for the effect of China’s overall planning of epidemic prevention and control and economic development. On the other hand, it also shows that foreign investment and foreign companies have further increased their confidence in investing in China after the formal implementation of the Foreign Investment Law.
Tao Jin, a senior researcher at the Suning Institute of Finance, told a reporter from the Securities Daily that since the foreign investment law and its implementation regulations were officially implemented, more intensive intellectual property and technology protection policies have been implemented, and foreign companies and foreign capital’s investment convenience and business operations in China have been implemented. The business environment continues to improve, concerns about investing in the Chinese market are further dispelled, and investment willingness continues to increase. In the first half of the year, except for February and March, when the epidemic was relatively severe, the remaining months maintained a positive year-on-year growth rate, especially since the second quarter, the overall growth rate was faster than last year.
The Entrepreneur Symposium held on July 21 proposed to create a market-oriented, legalized, and international business environment, and to protect the property rights and independent management rights of state-owned, private, and foreign-owned enterprises on an equal footing in accordance with the law, and to fully implement negative market access List system, implement the foreign investment law, relax market access.
The "Special Management Measures for Foreign Investment Access (Negative List) (2020 Edition)" and the "Special Management Measures for Foreign Investment Access (Negative List) (2020 Edition) in Pilot Free Trade Zones" released on June 24 show that the national foreign investment The number of entries on the negative list has been reduced from 40 in 2019 to 33, and the pilot free trade zone has been reduced from 37 to 30.
"After the test of the epidemic, investors from various countries will understand more deeply that China's pace of promoting higher levels of opening up will not slow down, China's policy of utilizing foreign capital will not change, and China will provide better opportunities for companies from all over the world to invest in China The direction of the service will not change.” The relevant person in charge of the National Development and Reform Commission said.
When it comes to implementing the foreign investment law and relaxing market access, what are the effects of stimulating the vitality of enterprises? Xiao Benhua said that the implementation of the Foreign Investment Law has created an environment for foreign investment to compete on an equal footing with domestic investment, stabilized foreign investment expectations, and inspired foreign investment to further expand investment in China.
Pan Helin, executive dean and professor of the Institute of Digital Economics of Zhongnan University of Economics and Law, told a reporter from Securities Daily that the foreign investment law has been officially implemented for more than half a year, which is a milestone in the history of China's foreign investment development. First of all, the implementation of the Foreign Investment Law has released a strong signal of China's expansion of opening up and played an important role in boosting global investor confidence. Second, the Foreign Investment Law has legally made detailed regulations on market access and transparency of foreign investment policies, which have improved the level of liberalization and facilitation of foreign investment. In addition, the foreign investment law will also produce a "catfish effect", which will force the reform and development of domestic enterprises, accelerate the transformation and upgrading of enterprises, and keep up with the pace of innovation.
Tao Jin said that in addition to emphasizing a fairer market operating environment, the Foreign Investment Law also promotes four aspects of strengthening the protection of foreign-funded enterprises’ property rights, reducing relevant legal constraints, urging local governments to abide by their promises, and improving mechanisms for foreign-funded enterprises’ complaints and rights protection. Provisions are made for the development of foreign investment. The relaxation of market access and the implementation of the negative list management system in more regions and a wider scope will further expand the investment and business scope of foreign-funded enterprises. Foreign-funded enterprises will obtain a more adequate market competition environment and introduce more competitiveness to the market. , Which in turn stimulates the vitality of market-wide enterprises. (Securities Daily)