In 2017, the Ministry of Commerce thoroughly implemented the spirits of the Central Economic Work Conference and the 16th meeting of the Central Financial Leading Group, conscientiously implemented the government work report and the State Council's deployment on foreign capital, created a good business environment, optimized the opening-up of regions and nurtured a new advantage in the use of foreign capital, kept innovative and progressive, overcame difficulties, and achieved steady progress and good momentum in the use of foreign capital.
Increasingly deepened reform of foreign capital management system. The Ministry of Commerce revised and promulgated the Interim Administrative Measures for the Record-filing of the Incorporation and Change of Foreign-invested Enterprises (Order of the Ministry of Commerce [2017] No.2), and incorporated foreign capital merger and acquisition of enterprises with business scope not subject to special access management measures into record-filing administration. Meanwhile, constantly deepened the reform of "streamlining administration, delegating powers, improving regulations and optimizing services" by realizing comprehensive online record-filing of incorporation and change of foreign-invested enterprise outside the negative list to significantly improve convenience.
Constant expanded foreign investment field. The Ministry of Commerce requested the State Council to issue the Circular of the State Council on Several Measures concerning the Expansion of Opening-up and the Active Use of Foreign Capital (Guo Fa [2017] No.5) and the Circular of the State Council on Several Measures to Boost the Growth of Foreign Investment (Guo Fa [2017] No.39), in which 42 measures for expansion of opening-up and active attraction of foreign capital were put forward to promote the relevant departments and all localities to speed up the formulation of implementation measures and supporting schemes. Revised the Catalogue for the Guidance of Foreign Investment Industries (Revised in 2017) and the Special Administrative Measures (Negative List) for Foreign Investment Access to Pilot Free Trade Zones by deleting 30 and 27 restrictive measures respectively, and revised and implemented the Catalogues of Foreign-invested Advantage Industries in Central and Western China by adding 139 items in which foreign investments are encouraged. Foreign investors' vitality of investment in high-end manufacturing industry, modern service industry and Central and Western China was effectively stimulated.
Promoted construction of free trade zones under overall planning. Deepened the reform and opening-up of Shanghai Pilot Free Trade Zone in an all-round way, studied and proposed new tasks of pilot programs based on summarizing the experience of building three pilot free trade zones in Guangdong, Tianjin and Fujian Provinces, promoted the establishment of seven pilot free trade zones including Liaoning Pilot Free Trade Zone, and thus formed a "1+3+7 " pattern of interconnected development covering Eastern, Western, Southern, Northern and Central China. Steadily replicated and popularized the experience of pilot reform of pilot free trade zones, formed and popularized the second batch of best practice cases and the third batch of experiences of pilot reform, studied and proposed a new batch of experiences of and suggestions on pilot reform, formed a sound situation of sharing reform bonus and opening-up efficiency. From January to November, foreign capital actually used in pilot free trade zones totaled CNY91.51 billion, accounting 11.4% of total foreign capital actually used in China.
Optimized and innovated open carriers and platforms. Established the development direction of national economic and technological development zones, adhered to the development of real economy, and formed more than 20 industrial clusters valued at hundreds of billion yuan, covering automotive, electronics, medicine and other fields. In the first three quarters, the total industrial output value above designated size, fiscal revenue, and total import and export value of national economic development zones, up 7.7%, 17.2% and 16.7% YoY respectively. Promoted the construction of border economic cooperation zones and cross-border economic cooperation zones under overall planning, enhanced supports and helped border areas to cultivate distinctive and advantageous industries, gradually consolidating the foundation for open development.
From January to November 2017, China's absorption of foreign capital showed the characteristics of "being stabilized in one aspect and optimized in three aspects" through unremitting efforts. Stabilized scale of foreign investment. From January to November, 30,185 foreign-funded enterprises were newly established in China, with actual foreign capital attracted amounting to CNY803.62 billion (US$119.91 billion, excluding data in the banking, securities and insurance fields), up 26.5% and 9.8% YoY respectively. Further optimized industrial structure. Foreign capital actually absorbed in high-tech industries increased by 66.1% YoY, accounting for 29.5%, representing an increase of 10% as compared with the end of 2016; more than 300 new foreign-invested R&D centers were set up. Constantly optimized regional layout. The effect of transfer of domestic and overseas industries to Central China was apparent with actual foreign capital absorbed up 29% YoY marking a leading growth rate in the whole country. Increasingly optimized management system. Deeply promoted the negative list management system, pilot free trade zones and other major reform, significantly improved investment convenience, and realized the rate of completion of record-filing of incorporation and change of foreign-invested enterprises being over 96%.
In 2018, the Ministry of Commerce will comprehensively implement the spirits of the 19th CPC National Congress and the deployment of the Central Economic Work Conference, always adhere to the principle of actively and effectively utilizing foreign capital; make pioneering efforts and work hard by centering on "promoting the formation of a new pattern of full opening-up" to give full play to the important role of foreign capital in promoting high-quality economic development and deepening the supply-side structural reform, and strive for the realization of the "Two Centenary Goals" and the great rejuvenation of the Chinese nation.
Translated by Hou Zuowei