Tannet reads from China Daily that large Chinese cities will be beneficiaries of increased foreign direct investment through new channels in the service sector, thanks to a fairer market environment and stricter laws to protect intellectual property.
Their comments came after the central government's call on Monday to ease the entry restrictions and share ratio limitations on foreign investment in areas such as nursery and elderly care, architecture, accounting, commerce and logistics, e-commerce and the traditional manufacturing and service sectors.
The central government urged megacities including Beijing, Shanghai, Guangzhou and Shenzhen to take the lead in improving the business environment, calling for moves to reduce inspections and fines on companies, and ban the charging of illegal fees.
"Led by supply-side structural reform and an innovation-driven strategy, China's economy is increasingly dominated by the service sector, and more profound changes are occurring in relatively developed regions," said Gao Peiyong, director of the Institute of Economics at the Chinese Academy of Social Sciences in Beijing.
FDI inflows fell 0.1 percent year-on-year to 441.54 billion yuan ($65.33 billion) between January and June, but the decline narrowed from that in the first five months, as foreign investment in June rose 2.3 percent to 100 billion yuan, according to data from the Ministry of Commerce.
"There are five elements that are critical to FDI－of course rapidly growing market consumption in China is the most important of all. Global companies also look at reasonable labor and logistics costs, mature industrial chains, and an improving business climate when they plan to expand," said Liu Shengjun, an economist at the Lujiazui Institute of International Finance.
Eager to enhance the country's earning ability, the Chinese government announced at the end of last month that more sectors are now open for foreign investment in China's 11 pilot free trade zones, ranging from helicopter manufacturing to financial services.
China will release the 2017 Catalog for the Guidance of Foreign Industries to offer more favorable policies and further improve the market environment for global companies by the end of this month. (Source: China Daily)
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