Amid difficulties in attracting foreign investment, China’s economic heavyweight, the Vice-premier has instructed to rectify discrimination against foreign companies.
According to Xinhua News Agency, Chinese Vice Premier He Lifeng spoke at the Foreign Investment Workshop in Beijing on Monday, emphasizing the need for a deeper understanding of the new challenges in attracting foreign investment. He stated, “We need to strengthen our confidence and determination and do a better job attracting and utilizing foreign investment.”
He continued, advocating for more open market access, the removal of unreasonable restrictions, and using the advantages of a super-large market to attract real foreign investment.
Lifeng also highlighted the importance of treating domestic and foreign companies equally in areas like equipment upgrades, government procurement, and bidding processes, as well as ensuring smooth communication channels to address the needs of foreign companies.
Furthermore, he mentioned that provinces that successfully attract foreign investment should assume greater responsibilities and lead in creating various open platforms.
From January to May this year, China’s Foreign Direct Investment (FDI) scale fell by 28.2% compared to last year, stopping at 412.51 billion yuan (approximately $57 billion). China’s foreign investment attraction has steadily decreased this year, and the fall is increasing monthly. Although China’s Ministry of Commerce (MOFCOM) says, “The amount has decreased compared to last year due to the base effect of very high investment last year, but the investment structure is being optimized, such as an increase in high-tech investment,” the dominant view is that it is due to Western containment. As the asset market, such as securities and real estate, is stagnant and the Purchasing Managers Index (PMI) shows a recession phase, China cannot help but feel a sense of crisis as the signs of economic recession are deepening.
Meanwhile, Lifeng has been actively ordering measures by identifying problems in the Chinese economy by field. In April, he issued guidelines at a real estate and financial institution roundtable in Zhengzhou, Henan Province, to designate the projects of real estate companies in financial difficulties as a whitelist and provide financial support. In May, he also ordered countermeasures against risks of real estate, local government debt, and small and medium-sized local banks at a meeting with Beijing financial executives.
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