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The business investment environment in China

September 12 2018

"From the data of the first half of the year, the enthusiasm of investors from all over the world to invest in China has not diminished, especially in the High-tech Manufacturing and Service Industries, the enthusiasm of foreign investment is very high. This is due to the huge potential of the Chinese market, especially in the context of economic structural transformation and upgrading, foreign investors are not to miss such development opportunities; on the other hand, thanks to China's continuous opening measures, the restrictions on related fields are decreasing, providing the conditions for foreign capital to enter the Chinese market." Huo Jianguo, Vice President of the China World Trade Organization Research Association, said in an interview with this reporter.

Starting from July 28 this year, the national version of the 2018 "negative list" began to be implemented; from July 30, the 2018 "negative list" of the Free Trade Zone began to be implemented. Huo Jianguo said that the release and implementation of these two negative lists is another major measure for China to expand its opening up and relax market access. The national version of the negative list has introduced open measures in 22 areas, and the restrictions have been reduced by nearly a quarter.

"There are most opening areas in which the negative list, is the long-term concern for foreign investors. For example, in the Manufacturing Sector, the Automotive Industry is opened in different stages; in the Service Sector, the foreign stocks restrictions in the financial sector are eliminated. We believe that the implementation of the "New Vision Negative List" will further stimulate the enthusiasm of investors from all over the world to invest in China,” Gao said.

While market access has been greatly relaxed, more and more initiatives to optimize the business environment have accelerated roots across the country. At the end of June this year, Beijing completed the implementation of the plan for further optimizing the business environment, implementing the principle of equal treatment for all types of ownership enterprises, and abolishing all the regulations that impede fair competition. Shanghai has introduced “100 open expansions”, which improve the approval efficiency for neterprises;   Zhejiang Province vigorously promotes the digital transformation of the government, and now more than 80% of the matters can be handled online; Xiamen City has simplified the procedures and upgraded through the reform of the approval system for engineering construction projects. The speed has attracted a large number of enterprises to settle in Xiamen...

"We will continue to improve the business environment, protect the legitimate rights and interests of foreign-funded enterprises in China, attract more outstanding foreign companies to China, and achieve common development in the opportunities of China's development, so that China will continue to be the first choice for foreign investment." Gao said.