According to the data released by the Ministry of Commerce, in the first half of this year, China's actual use of foreign investment was 446.29 billion yuan, an increase of 1.1% year on year, showing a small steady upward trend. According to this, Professor Sang Baichuan, Dean of the Institute of International Economy, accepted an interview with the Economic Daily.
In an interview with the Economic Daily, Professor Sang said that the achievements of China's absorption of foreign investment in the first half of the year were remarkable, which was benefited from China's continuous opening-up and active absorption and utilization of foreign investment, especially the introduction of a series of measures, such as relaxing the restrictions on foreign investment shares, reducing the length of the negative list of foreign investment, strengthening and improving the protection of intellectual property rights, etc. Enterprises from all over the world see the improvement of China's investment environment and good prospects for development, and enhance their willingness to invest in China.
Professor Sang also pointed out that the current rise of China's factor cost will have a substantial impact on the inflow of foreign capital. Because of the rising of factor cost, the cost dependent FDI may be greatly impacted. Therefore, in the process of strengthening the structural reform, we should reduce the cost of factors, improve the total factor productivity and digest the pressure of the rising cost of factors through reducing taxes and a series of institutional reforms, so as to stabilize the foreign investment in traditional labor-intensive industries.
When talking about the focus of introducing foreign investment in the second half of the year, Professor Sang believed that the most important thing is that China should stabilize its expectations. After the introduction of the "six stability" policy, some supporting policies and measures will be introduced in succession, which will play an important role in stabilizing people's expectations. Professor Sang said that through these measures, foreign investment should be further encouraged to enter China's high-tech industry, enter related fields that are consistent with China's consumption structure upgrading, and enter the central and western regions, especially the border areas. In terms of the flow of foreign investment, we should not only actively absorb new foreign investment, but also stabilize the stock of foreign investment, and make joint efforts in finance, finance, taxation, industrial policies and other aspects.
Professor Sang said that although the current economic and trade frictions between China and the United States are still continuing, we should especially avoid going to seclusion. We should actively absorb all foreign investment, including American enterprises. In fact, the U.S. will impose tariffs to restrict the export of Chinese enterprises, increase the export cost of American enterprises, and reduce the income of American enterprises. In this way, the conflict of interest between American enterprises and American government will intensify. From this point of view, to avoid going to seclusion is rather a mechanism to restrict American behavior.
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