What is the industry orientation behind the new entries in the "Catalogue of Industries Encouraged for Foreign Investment (2022 Edition)" (hereinafter referred to as the new version of the "Catalogue of Encouragement")?

What's the signal?

　　On October 28, the National Development and Reform Commission and the Ministry of Commerce publicly released a new version of the "Encouragement Catalog".

The relevant person in charge of the National Development and Reform Commission said in an interview with reporters that the revision of the new "Encouragement Catalog" is an important measure to further stabilize foreign investment under the current situation, which is not only conducive to promoting high-level opening up, accelerating the construction of a new development pattern, but also further stabilizing foreign investment. Foreign investment, optimizing investment structure, boosting foreign investment expectations and confidence.

The overall consideration is to carry out revisions in accordance with the relevant industrial development planning requirements and policy orientations, and in accordance with the principle of "increasing total volume and optimizing structure".

Continue to encourage foreign investment in the manufacturing industry. The "National Catalogue of Encouraged Foreign Investment Industries" (hereinafter referred to as the "National Catalogue") adds or expands items such as components, parts and components, and equipment manufacturing. Add or expand items such as professional design, technical services and development; continue to encourage foreign investment in the central, western and northeastern regions, and add or expand the "Catalogue of Advantageous Industries for Foreign Investment in the Central and Western Regions" (hereinafter referred to as "Midwest Directory") related entries.

　　It is understood that the support policies enjoyed by foreign investment encouraged projects mainly include: First, for encouraged foreign investment projects, import equipment for self-use within the total investment, except for the "Catalogue of Imported Major Technical Equipment and Products Not exempted from Tax Exemption" and "Foreign-Invested Projects Not Allowed" In addition to the Catalogue of Tax-Free Imported Commodities, the policy of tax exemption is implemented; the second is that foreign-invested enterprises in the encouraged industries in the western region and Hainan Province that meet the conditions are subject to a reduced corporate income tax of 15%; the third is the encouragement category for intensive land use. Foreign-invested industrial projects are given priority to supply land, and when determining the floor price for land transfer, it can be implemented at a rate that is not lower than 70% of the national minimum price for industrial land transfer according to the land level of the location.

　　The revised "Encouraging Catalog" has a total of 1,474 items, a net increase of 239 items and 167 revisions compared with the 2020 edition.

Among them, there are 519 national catalogs, with 39 additions and 85 revisions; 955 central and western catalogs, with 200 additions and 82 revisions.

The main changes include three aspects:

　　First, the national catalog will continue to take manufacturing as the key direction to encourage foreign investment, and improve the level of the industrial chain and supply chain.

In the field of terminal products, items such as aviation ground equipment, glow discharge mass spectrometers, transmission electron microscopes, and industrial water-saving related equipment are added or modified.

In the field of parts, items such as shield machine bearings, key parts related to automatic driving, and high-performance light metals are added or modified.

In the field of raw materials, items such as high-purity electronic chemicals, high-performance coatings, and organic polymer materials are added or modified.

　　In this regard, Wu Yiping, a professor at the School of Public Economics and Management of Shanghai University of Finance and Economics, said in an interview with The Paper that making manufacturing a key direction to encourage foreign investment is conducive to filling the shortcomings of the industrial chain and supply chain and better participating in international market competition.

At present, in key industries such as equipment manufacturing, some key components of equipment need to be imported, and it is difficult to conduct independent research and development in the short term.

Therefore, encouraging foreign investment to enter the fields of components, parts, and equipment manufacturing plays an important role in making up for weaknesses in the high-quality development of the manufacturing industry.

　　"In the introduction of foreign investment, based on local comparative advantages, we will comprehensively use multiple models such as leading investment, platform investment, industrial chain investment, and capital investment. Based on creating a high-quality business environment, we will combine investment attraction with talent attraction. The combination will eventually form an industrial ecosystem of dislocation competition and development." Wu Yiping said.

　　"This reflects my country's orientation to promote the high-end, intelligent and green development of the manufacturing industry." Zhong Shihu, a master tutor at Shanghai National Accounting Institute, pointed out in an interview with The Paper. Overall, the new "Encouragement Catalog" also reflects the "Adhere to the theme of promoting high-quality development, improve the quality and level of international circulation, and accelerate the construction of a modern economic system" as put forward in the report of the 20th National Congress of the Communist Party of China.

　　Second, the national catalog will focus on promoting the integrated development of the service industry and manufacturing industry.

In the field of technical services, new items such as low-carbon, environmental-friendly, green, energy-saving, and water-saving advanced system integration technologies and services, development and application of environment-friendly technologies, and design and development of offshore wind power equipment and marine new energy equipment have been added.

In the field of business services, add or modify items such as recycling of retired wind turbine blades and waste photovoltaic modules, clean operation of traditional energy, engineering construction and technical services, and language services.

　　Zhong Shihu pointed out that this reflects my country's orientation to build a new system of high-quality and efficient service industry and promote the deep integration of modern service industry and advanced manufacturing industry.

　　The third is to expand the encouraged scope of the catalogue in the central and western regions based on the comparative advantages of labor force and characteristic resources in various regions.

Give full play to the advantages of human resources, and add labor-intensive processing trade-related industries in Jiangxi, Anhui, Henan, Guizhou, Gansu, Ningxia, Guangxi and other provinces.

Give full play to the advantages of traditional manufacturing, and add items such as equipment manufacturing in Chongqing, Sichuan, Hubei, Hunan, Shaanxi and other provinces and cities.

Based on the advantages of agricultural resources, new items such as processing of agricultural and livestock products have been added in Heilongjiang, Jilin, Liaoning and other provinces.

Improve the level of export-oriented economic development along the border, and add new items such as business logistics, tourism and leisure in Tibet, Xinjiang, Yunnan and other provinces and regions.

Promote the green transformation of resource-based regions, and add relevant items in Shanxi, Inner Mongolia and other provinces.

　　"This reflects my country's orientation to promote coordinated regional development, to give full play to the endogenous comparative advantages of major regions in my country, and to use the exogenous comparative advantages formed by foreign capital to promote the rational flow and efficient aggregation of various elements, so as to form unique Comprehensive comparative advantage." Zhong Shihu said.

　　Zhong Huiyong, associate professor of the School of Finance of Shanghai University of International Business and Economics and deputy director of the Institute of Financial Development, told The Paper that the new version of the "Encouragment Catalog", on the one hand, has obvious industry orientations, biased towards advanced manufacturing, advanced service industries, energy conservation and environmental protection and other fields. This is also to encourage foreign businessmen to actively participate in the industrial transformation and upgrading of China's economy, and to promote high-quality development under the new development pattern.

On the other hand, there is also a relatively obvious regional bias, encouraging foreign businessmen to actively invest in the central, western and northeastern regions.

　　Zhong Shihu pointed out that in general, the new version of the "Encouraging Catalogue" is consistent with the spirit of the 20th National Congress of the Communist Party of China, which fully reflects my country's determination to promote high-quality development of foreign capital utilization. However, to implement this policy and attract high-quality foreign investment, the key is not only to Let foreign capital come in, but also let them be willing to come and stay.

"This requires us to protect the rights and interests of foreign investment in accordance with the law, create a market-oriented, legalized, and internationalized first-class business environment, and minimize the uncertain interference caused by factors such as the epidemic, so as to alleviate their worries and stabilize their business. Expectations. After all, for foreign investors or domestic investors, stable expectations are the most important, and confidence is gold.”

　　Zhong Huiyong also said, "It should be noted that foreign businessmen will comprehensively consider the comparative advantages of each country and region, and more often choose investment regions and industries on a global scale. Therefore, when attracting foreign investment, it is also necessary to recycle from international sources. From this perspective, we can better promote the participation of foreign capital in my country's economic development."