Supervision and review of the hottest foreign capi

2022-07-30
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The national development and Reform Commission recently released the 11th Five Year Plan for the utilization of foreign capital. This is the first time that China has announced the data obtained from the five-year experiment on the utilization of foreign capital. There may be a certain deviation in the planning. It is planned to encourage foreign investors to transfer processing and manufacturing links and R & D institutions of higher technological level to China, and set up manufacturing, supporting and service outsourcing bases in China, so as to give play to the technology spillover effect and promote the enhancement of the independent innovation ability of Chinese enterprises

the plan emphasizes that it will strengthen the review and supervision of key enterprises in sensitive industries related to national security through foreign capital M & A, and ensure the control and development leadership over strategic industries and key enterprises related to national security and the people's livelihood

encourage foreign-funded projects to purchase domestic equipment and technology

according to the relevant person in charge of the national development and Reform Commission, the plan puts forward major policies and measures for utilizing foreign capital and promoting the establishment of a more open independent innovation system during the Eleventh Five Year Plan period. Including formulating comprehensive incentive policies to guide foreign investors, especially large multinational corporations, to transfer high-end processing and manufacturing links and R & D institutions to China, encouraging multinational corporations to set up production, manufacturing, supporting, service and training bases in China, and formulating supporting policies to encourage foreign-invested enterprises to carry out R & D cooperation with enterprises within the United Nations, so as to give better play to the technology spillover effect of foreign-invested enterprises

the plan shows that the Chinese government will improve the tax exemption policy for imported equipment of foreign-invested projects, encourage foreign-invested projects to purchase more domestic advanced equipment and technology, create a better market environment for domestic complete sets of equipment and advanced applicable technology, and promote the development of China's equipment manufacturing industry. While strengthening the protection of intellectual property rights, relevant departments will fully learn from international experience, formulate normative policies to prevent transnational corporations from abusing intellectual property rights to restrict China's independent innovation, and enhance China's ability to participate in the formulation of intellectual property rules

During the Tenth Five Year Plan period, marked by China's entry into the world trade organization, China's opening up has entered a new stage of fully participating in international economic cooperation and competition, and the utilization of foreign capital has also stepped up to a new level. Statistics show that during the Tenth Five Year Plan period, China actually utilized about 383billion US dollars of foreign capital. Among them, foreign direct investment was about 286billion US dollars, overseas stock issuance raised about 38billion US dollars, and foreign loans borrowed about 46billion US dollars, which greatly exceeded the actual completion amount of the ninth five year plan

however, there are still some problems worthy of attention in the utilization of foreign capital during the Tenth Five Year Plan period. For example, the problem of emphasizing quantity over quality in the introduction of foreign investment is still prominent. Some local governments and departments blindly attract investment regardless of cost, unilaterally pursue the amount of foreign investment, and sometimes violate the national industrial policy. Foreign capital mergers and acquisitions of leading enterprises in some industries increased. The scale and level of attracting foreign direct investment in the central and western regions are generally low, and there is a further gap between the central and western regions and the eastern regions in the use of foreign direct investment. 1. The operating procedures for the use of electronic universal testing machines have been further expanded. The technology spillover effect brought by foreign-invested enterprises is not prominent enough. Some foreign-invested enterprises abuse the protection of intellectual property rights, which is not conducive to the change of the rigidity of Chinese enterprise components and will remain unchanged for independent innovation. The existing management system of utilizing foreign capital needs to be improved urgently, and some current policies are not conducive to creating a fair competition environment for domestic and foreign-funded enterprises

the above person in charge of the national development and Reform Commission said that the national development and Reform Commission will attach great importance to these issues during the "Eleventh Five Year Plan" period and actively respond to them. Such as accelerating the introduction of the anti monopoly law; Further refine the development policies for sensitive industries related to the national economy, the people's livelihood and national security, and improve the access system for Foreign-funded Industries; Effectively guide the direction of foreign investment in the central and western regions, and formulate relevant policies and Implementation Rules for accelerating the opening up of the northeast and other old industrial bases and the central and western regions; We will strengthen tax supervision and curb the transfer of profits by foreign-funded enterprises through transfer pricing, related party transactions and other means

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