According to a meeting of the Central Leading Group on Finance and Economic Affairs in July, China should create "a stable, fair, transparent and predictable business environment," and speed up efforts to build an open economy to promote the sustainable and healthy development of the Chinese economy.
Inbound foreign direct investment (FDI) fell by 0.1 percent year on year to 441 billion yuan (66 billion U.S. dollars) in the first half of this year, but the number of new foreign enterprises in China was up by 12.3 percent, according to the Ministry of Commerce.
Starting on July 28, China implemented a revised foreign investment catalogue, which includes a "negative list" approach that identifies sectors and businesses that are off-limits or restricted for investment, as well as sectors and industries that the government wants to encourage foreign companies to invest in.
Today, over 95 percent of new foreign enterprises in China do not need government approval before they are set up, and the registry procedures take less than three days, compared with more than 20 days previously.
Just as a more open China means opportunities for the rest of the world, China is expecting inbound investment to play a larger role in its economic development, promoting the growth of new sectors and driving supply-side structural reform.
The FDI inflow into high-end sectors has been robust, official data showed. In the first half of this year, the high-tech manufacturing sector saw FDI up 11.1 percent to 34.97 billion yuan, while foreign investment in high-tech services rose 20.4 percent to 64.72 billion yuan.
To make China more appealing to talented people outside the country, the government will put in place a work permit system for foreigners working in China to streamline their working permit application procedures, expand visa issuance and extend visa expiration dates.
"The inflow of foreign capital has been pivotal for China to maintain a relatively quick growth rate. Our industries are in general at the lower end of the global value chain. We must send a strong message of welcome to foreign investment," Premier Li Keqiang told the meeting. (Source: Xinhua News)
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