ProductionofBeijingBenzAutomotiveCo.,Ltd.reachestheonemillioncarsmarkonNovember17,2016.CHINAhasshownresolvetocontinuereformandopeningup,andexpandmarketentryatitsownpaceagainstatideofglobalprotectionism.FirmactioninthisdirectionwastakenonJune28bytheNationalDevelopmentandReformCommission(NDRC)andtheMinistryofCommerce,whopublishedtheSpecialAdministrativeMeasures(NegativeList)onAccessofForeignInvestment(2018).Thelistgivesdetailsofthecountryopeningup22moreindustriesintheprimary,secondary,andtertiaryindustriestoforeigninvestment.Theseincludefinance,transportation,profes-sionalservices,infrastructure,energy,resources,andagriculture.OpeningWider
鈥淭herevisionofthenegativelistfollowstheprincipleoffurtherincreasingopening-up.Itisnotsimplyaboutreducingthelist.What鈥檚moreimportant,wemustrolloutmilestonemeasuresfortheopening-upofkeyareas,鈥漵aidanNDRCofficial.
OverthepastyearsChinahasintroducedandimprovedthenegativelistfortheaccessofforeigninvestmentinpilotfreetradezones.Lastyearthepracticewasexpandedtotherestofthecountry.Todatethenumberofrestrictionsonforeigninvestmenthasbeenslashedfrom180toaround60.The2018negativelistshed15itemsoverthe2017list,furtherreducingtheareaswhereforeigninvestmentissubjecttogovernmentreviewandapproval.
鈥淐hinahasadoptedaforeigninvestmentadministrationmodelofpreestablishmentnationaltreatmentplusanegativelist.Thismovemarksaninstitutionalreforminresponsetonewdevelopmentsineconomicglobalizationandchangesininternationalrulesforinvestment,鈥漵tatesthewhitepaper,ChinaandtheWorldTradeOrganization,publishedbytheStateCouncilInformationOfficeonJune28.
Asanindicationoftheimprovingbusinessenvironment,inthefirstfivemonthsofthisyear,incominginvestmentfromdevelopedeconomiesspiked,withactualinvestmentfromSingapore,SouthKorea,Japan,theU.S.andtheU.K.soaring33.9percent,66.9percent,5.1percent,16.3percent,and56.9percentrespectively.The2018BusinessClimateSurveybytheAmericanChamberofCommerceinChinafindsthatabout60percentofinterviewedcompanieslistedChinaamongtheworld鈥檚topthreeinvestmentdestinations,and74percentplannedtoexpandtheirinvestmentsinChinathisyear,bothhighestproportionsinrecentyears.
The2018negativelistmarksanotherstepinChina鈥檚pathtoeasemarketentryforforeigncapital.Itscrapstheblockonsuchmanufacturingindustriesasautomobiles,airplanes,andshipbuilding,andrelaxesaccesstoserviceindustrieslikefinanceandtransportation.ThischangesignifiesthatChina鈥檚systemofforeigninvestmentmanagementisbeingreformedtobemoreopen,flexible,andefficient,whichisimportantforthecountry鈥檚goalofbuildinganopeneconomy,saidLiDawei,assistantresearcherwiththeInstituteofInternationalEconomicResearch,AcademyofMacroeconomicResearch.
AutomobileandFinance
OverthepastmonthsUBSSecurities,Nomura,andJPMorganChaseallsentinapplicationstoChinaSecuritiesRegulatoryCommissionforjoint-venturesecuritiesfirmsinwhichtheywillhaveacontrollingstake.
The2018negativelistchartsouttheroadmapandtimetablefortheopeningupoftheautomobileandfinancialsectors.Fortheformer,thecaponforeignheldsharesinthemanufacturingofspecial-purposevehiclesandnew-energyvehiclesisremovedthisyear;thatoncommercialvehicleswillbescrappedin2020;andthatonpassengervehicleswillberescindedin2022.Inadditiontheregulationthataforeigncompanycansetupnomorethantwojoint-venturesproducingthesamekindofwholevehiclesinChinaisremoved.
Asforthefinancialsector,startingthisyear,restrictionsonsingleshareholdingsnotexceeding20percentandtotalshareholdingsnotexceeding25percentforoverseasfinancialinstitutionsinvestinginChinesecommercialbankshavebeenremoved.Theallowedproportionofforeigninvestmentinsecuritiescompanies,futurescompanies,andinsurancecompanieshasalsochangedfrom50percentto51percent,andtheselimitationswillbeeliminatedin2021.
鈥淲ewillincreaseopening-upstepbysteptoallowrelatedsectorssometimefortransition,andmeanwhilemakegreateropening-upmorepredictable,鈥漵aidtheofficialwithNDRC.Overthepast40years,China鈥檚marketeconomyhasgainedmaturityamidincreasingglobalinteractions,andChinesecompanieshaveblossomedamidfierceinternationalcompetition.Asaresult,thecountry鈥檚economictransformationandupgradingareaccelerating.
鈥淚nthisnewera,foreigninvestmentinChinashowsatrendofconcentratinginthesectorsofhi-techservicesandhigh-endmanufacturing.Inresponsetothistrendandonthebasisofitsdevelopmentstrategiesandexperience,theChinesegovernmentvoluntarilymakesthechoiceofexpandingmarketaccessandimprovingthebusinessenvironment,鈥漵aidZhangYansheng,chiefresearcherwithChinaCenterforInternationalEconomicExchanges.
OpennessStimulatesGrowth
Thelatestnegativelistsignifiesfurtheropening-upinmultiplesectorsthathaveanimmediateimpactonChina鈥檚pursuitofhigh-qualitydevelopment.
鈥淲ithgreatermaturityofourindustrial,policy,andlegalsystems,Chinahasbuiltasolidfoundationforhighqualitydevelopment,鈥漵aidtheofficialwithNDRC.Thenewopening-upmeasureswillfurtherdeepencooperationandexchangesbetweenChinaandtherestoftheworldinthefieldsofcapital,technology,managementandhumanresources,andbringaboutwin-winresultsoverabroaderspectrum.
Forinstance,increasingthemarketaccessformanufacturingofhighaddedvalueproductslikeautomobileswillescalatethesupplyofhigh-qualityproductsforChineseconsumers.What鈥檚more,thecompetitionandcooperationwiththeirforeignpeerswillgoadlocalproducersallalongtheproductionlinetoincreasetheirresearchanddevelopmentinputsandinnovativemanagement,whichwillleadtobetterproducts,services,andhighertechnicallevels.
Relaxingmarketaccessforlogisticsandspecializedserviceswillfacilitatethecombinationofforeignfirms鈥檃dvantagesintheserviceindustrywithChinesefirms鈥檃dvantagesintheprocessingandmanufacturingindustry,andpromotetheupgradingandtransformationofChina鈥檚manufacturingsectoringeneral.
Greateropennessofthefinancialservicesectorwillincreasetheefficiencyofcapitalallocation,reducethefinancingcostofbusinesses,andmotivatethemtoinvestmoreininnovationandtechnicalupgrading.Thesewillallleadtoimprovementinthequalityofsupply.
鈥淚mprovingthequalityofsupplydemandshigh-qualityforeigninvestment,鈥漵aidLiDawei.Theinflowofhigh-qualityforeigninvestmentwillnotonlyresultinmoreoptionsforconsumersbutalsocreatethecatfisheffect鈥損romptingdomesticcompaniestoproduceproductsofbetterqualitythatcanmeetChinesepeople鈥檚ever-growingneedsforabetterlife.Thevolumeofforeigndirectinvestment(FDI)inChinahasremainedthelargestamongdevelopingcountriesfor26years.AfterChinajoinedtheWTO,itsFDIclimbedfromUS$46.88billionin2001toUS$136.32billionin2017,growingbyanaverageof6.9percentyearonyear.Thiswasduetothecountry鈥檚continuousopening-up,whichisalsotheprerequisiteforChina鈥檚transitiontohigh-qualitydevelopment.
AccordingtotheNDRC,despitetheprofoundchangesintheinternationalenvironment,especiallysurgingtradeprotectionism,Chinaispoisedtoopenwider,andadvanceitsreforms,development,andinnovationwithgreateropenness.Whileshiftingtohigh-qualitydevelopment,itisalsoadvancingeconomicglobalizationtonewlevels.
ANBEI&CHENWEIWEIarereporterswithXinhuaNewsAgency.