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      Economy

      China to beef up efforts in attracting foreign investment

      2024-07-31 08:49:25Global Times Editor : Li Yan ECNS App Download

      China's top economic planner, the National Development and Reform Commission (NDRC), announced plans to phase in a new system that is compatible with a higher-level open economy, and accelerating usage of foreign investment, NDRC Chairman Zheng Shanjie told Xinhua News Agency on Tuesday.

      The announcement reflects China's commitment to promoting opening-up and deepening economic restructuring, experts say.

      The announcement follows the recently concluded Third Plenum of the 20th CPC Central Committee. The plenum communique stressed an unequivocal commitment to comprehensively deepening reforms to advance Chinese modernization.

      Zheng highlighted that openness is a distinctive marker of China's modernization drive, and it is necessary to foster reforms through greater openness, so as to build a new system for a higher-level open economy.

      Zheng underscored four key areas of economic reform including expanding institutional openness, deepening reforms in foreign and outward investment management systems, optimizing the layout of regional openness, and promoting high-quality cooperation under the Belt and Road Initiative (BRI).

      China aims to align itself with international high-standard economic and trade rules, focusing on intellectual property protection, and other key areas to achieve compatibility in regulations, management, and standards, Zheng said.

      In terms of deepening reforms on outward investment systems, Zheng noted plans to expand the catalog of industries encouraging foreign investment and to further reduce the negative list for foreign investment access. The NDRC will lift restrictions on foreign investment in the manufacturing sector, foster opening-up to attract foreign capital, and ensure national treatment for foreign enterprises.

      Additionally, Zheng referenced the accelerated development of the pilot free trade zone in South China's Hainan Island, aiming to create a comprehensive open pattern that links land and sea, and integrates the eastern and western regions of China.

      The NDRC will further enhance the stability and effectiveness of international cooperation under the BRI.

      Reflecting on China's ongoing opening-up, the country has seen a notable increase in foreign investment. In the first half of 2024, 26,870 new foreign-invested enterprises were established in China, marking a 14.2 percent increase compared to the previous year. The country also attracted nearly 500 billion yuan ($69 billion) in foreign investment in the first half year, according to the latest data from the Ministry of Commerce.

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