Rising Foreign Investment in China, Despite Trade Tensions

There has been no decline but rather a rise in foreign investment in China since the China-US trade dispute started earlier this year.In the first10months of this year,49,545new foreign-invested enterprises were set up nationwide,up89.3%over the same period last year,data from the Ministry of Commerce(MOC)showed.

PROMOTE FOREIGN INVESTMENT IN SHAANXI

Since the start of the reform and openingdrive, foreign trade and economiccooperation in Shaanxi Province hasmade significant progress. By the end of1995, the province had approved theimplementation of 2,313 items utilizing foreigninvestment, with total investment value ofUS＄6.771 billion, contractual foreigninvestment value of US＄4.94 billion, actualutilization of foreign investment of US＄2.118billion, accounting for 42.9 percent of thecontractual foreign investment value. InJanuary-April 1996, the province approved106 items of foreign direct investment, withtotal investment of US＄308 million,contractual foreign investment of US＄220million and actual utilization of foreigninvestment of US＄116 million.

Foreign Investment and China Automotive Industry

Under the influence of global finan- cial crisis,the international automotive market is covered in an unpleasant at- mosphere.In September 2008,the North American market had an astonishing decrease of 27%.All automotive groups in the USA and Europe began to phase out production,reduce production or staff. GM and Chrysler planned to incorporate,

Foreign Investment Shifting to High-end Link in Industrial Chains

In October,the national consumption market continued to maintain the momentum of rapid growth.Retail sales of national social consumer goods in October amounted to RMB 3.11 trillion,up10%year on year.From January to October,retail sales of national social consumer goods increased 10.3%,the same growth as that of the first three quarters.According to the monitoring of the MOFCOM,in October,5,000major retail businesses increased 4.6%

Foreign Investment & China's Shipbuilding Industry——Interview with General Manager Wang Rongsheng of China Shipbuilding Industry Corporation

"China’s shipbuilding industry has boomed in the last 15 years since the end of the 1970s and has drawn attention of international shipbuilding and shipping circles even though a gap still remained between China and advanced shipbuilding countries including Japan and South Korea. China ranks among advanced shipbuilding countries relying on its own investment and enterprise development. China has opened its shipbuilding industry to the outside world for wider cooperation and more foreign involvement."

HIBISCUS KINGDOM——OPENING FOR FOREIGN INVESTMENT

Hunan is situated on themiddle reaches of theYangtze River.As most partof the province lies on thesouth of Dongting Lake,it iscalled Hunan.Also it is called"Xiang"for the vast XiangRiver that runs through itfrom south to north.Furthermore,it is known asthe Hibiscus Kingdom dueto the abundant hibiscusthere,described in theancient poem"Autumn WindBlows through the HibiscusKingdom".

GUIDELINES FOR FOREIGN INVESTMENT IN HEBEI PROVINCE

Ⅰ.Key projects encouraging foreigninvestment 1. Existing enterprises are taken asbases for the introduction of foreign funds,advanced technology and equipment,andmanagerial experience,to undertake therenovation of existing enterprises,especiallyin large and medium-sized state-ownedenterprises,in order to achieve the purposeof upgrading product quality,increasingvarieties,optimizing product structure,enlarging production scale,raising marketcompetitiveness and increasing exportearnings.Key industries in which

Xiangfan's Preferential Treatment for Foreign Investment

1. .Productive enterprises with foreign investment will be exempt from income tax for the first two years starting from the year of opening,and their income tax will be cut by half during the next three years. After that, they will continue to enjoy half tax rates, and at the same time, qualify for local tax exemption. 2. For the Sino-French joint venture approved to produce 300,000 buses,

Foreign Investment Projects(Yinan County,Shandong Province)

1 Shandong Shengle Shoemaking Industrial Group Corp. To import two advanced high-grade shoe material production lines, one for dry processing and the other for wet processing, and printing and environment monitoring equipment for the production of high-grade vamp materials. 2 Shandong Yimeng To import production equipment for

China's Agriculture Calling for Foreign Investment

At the recently-convened meetings of the National People’sCongress and the Chinese People’s Political ConsultativeCoference, agriculture has once again become a hot topicattracting attentions of deputies. Speeding up the opening up ofagricultural sector and properly resolving the thorny financial andtechnological problems confronting it become a highlighted issuein the State’s plan to utilize foreign investment in the coming fewyears.

THE GUIDING CATALOGUE OF INDUSTRIES FOR FOREIGN INVESTMENT WILL BE REVISED SIGNIFICANTLY NEXT YEAR

Director of the department of foreign capital utilization from the State Planning Commission, Mr. Zhang Xiaoqiang reveals, The Guiding Catalogue of Industries for Foreign Investment will be revised this year. The symposium jointly organized by Macro-Economic Research Institute of the State Planning Commission and the Foreign Economic Policy Research Institute of the Republic of Korea was held in Beijing a few days ago, of which the theme was to "Study the Prospect and Partnership o the Sino-ROK Economy in the 21st Century". During the symposium, the director of the department of foreign capital utilization form the State Planning Commissions, Mr. Zhang Xiaoqiang gave a special speech entitled "The Opportunity for Foreign Enterprises to get into Chinese Market and the Policy Orientation for Foreign Direct Investment".

THE STATE COUNCIL DECIDES TO EXTEND THEIMPORT-DUTY EXEMPTION PERIOD FOR IMPORTS OF EQUIPMENT AND RAW MATERIALS BY ENTERPRISES WITH FOREIGN INVESTMENT

Recently the State Council decided to extend the period ofduty exemption for imports of equipment and raw materials by foreign-invested enterprises below US$30 million.In order to administrate import and export activities in light ofinternational practice and apply a unified, fair and standardizedpolicy toward import duties, the State Council, on December28,1995, decided to reform and adjust the policies of import duties by fairly significant reduction of the overall import tariff leveland elimination of preferences of import-duty exemption for mostimport items, which was also applicable to imports of equipmentand raw materials by foreign-invested enterprises set up since April1st, 1996. At the same time, with a view to maintaining the policycontinuity and relative stability, those enterprises established before March 31, 1996 were allowed an extended duty-exemptionperiod of one to two years for importation of equipment and rawmaterials(referring to construction materials, etc.) if such importswere below the value of their total investments, and for

New Aspects in Foreign Investment Policy

In the wake of the further expansion of China’s opening to the outside world in recent years, quite a few aspects have been supplemented to the policies of absorbing direct foreign investments.

Beijing Foreign Investment Service Centre

Set up in 1988 to meet the demand of economic reform, the Beijing Municipal Foreign Investment Service Centre (BFISC) specializes in absorbing foreign capital and serving domestic and foreign investors and foreign-funded enterprises. It is a permanent organ under the Beijing Municipal Foreign Investment Management Commission and the

TIELING——AN IDEAL PLACE FOR FOREIGN INVESTMENT

Located in the northern part ofLiaoning Province,Tieling isan inland region on the LiaodongPeninsular.With Shenyang to thesouth,Fushun to the east,InnerMongolia to the west and Jilin to thenorth,Tieling covers 13,000 sqmand has two prefectures,threecounties and a population of 2.87million under it.The overlappingmountains and tall trees and wildanimals and plants in the easternpart serve as the forestry base ofTieling.In the middle and westernsection along the Liaohe River valleyare grown farm and economic cropson flat and fertile land.Known as the"granary of Northern Liaoning," it isa State key commodity grainproduction base,where 2.5 billionkilograms of grain are produced eachyear,accounting for 1/5 of the totalgrain output in the province.Theexport of grain and corn here makesup 1/3 and 2/3 of the provincial total.Tieling is also abundant in thebreeding of cows,pigs,chickens,geese and sheep as well as in theproduction of such famous Chinesemedicinal herbs as Ginseng,piloseantler and bear gallbladder,

Qinghai's Projects Encouraging Foreign Investment

1. Agriculture, Forestry, Animal Husbandry, Fishery and Relevant Industries 1) Reclamation and development of waste land and hills,transformation of medium-to-low output land and forest; 2) Development of new varieties of good quality and high output agricultural crops such as cereals, oils, fruits, vegetables, flowers and forage grass;