There are still many uncertainties for the change of COVID-19 and international environment this year, the cross-border investments stay low and global industrial chains and supply chains need to be reconstructed. Under this background, Ministry of Commerce issued a Notification on Stabilizing Foreign Investment under New Developing Construction to plan the works of this stabilization on February 25th, 2021.
Ⅰ Expand high-level opening, attract more high-quality international resources to promote domestic circulations
Implement the management system on pre-entrance national treatment, negative lists (2020 edition Special Administrative Measures for the Access of Foreign Investment in the whole nation, the Free Trade Pilot Zone and free trade harbors), and Catalogue of Industries for Encouraging Foreign Investment (2020 edition) to ensure the open initiatives in the fields as automobile and finance, and to guide more foreign investments towards fields as manufacturing, new industries, high-tech, energy conservation and environmental protection.
Push the combination of attracting investment and attracting technology, intelligence and talent, promote the policy requirement reduction for foreign R&D centers, and guide foreign investors to increase investments in scientific and technological innovation in China.
Ⅱ Improve the open platform level, create connection and support for both domestic and international cycles
Create the new highland for reform and opening, formulate a negative list of cross-border service trades in the Free Trade Pilot Zone, and form more institutional innovation achievements to be replicated and popularized throughout the country, raise the developing and opening level between areas.
Carry out pilot projects to expand the opening of the service industry, promote innovation and upgrading of national economic developing areas, and foster strategic emerging industries and advanced manufacturing clusters such as electronic information, intelligent manufacturing and biomedicine.
Ⅲ Increase the strength of industry chain investment, promote docking integration between international and domestic industrial chains
Make full use of information technology to innovate the way of attracting investment, actively attract strategic investment, study and improve the strategic investment management system of foreign investors to listed companies, and loose the requirements for the qualification conditions, shareholding ratio and holding lock period for foreign investors to listed companies.
Carry out multiple forms of investment promotion activities and give full play to the role of various exhibitions.
Ⅳ Upgrade the service protection system for foreign investments to ensure the steady operation of key foreign-funded enterprises within the supply chain and the industrial chain
Improve the service mechanism for foreign investments, strengthen the contact services for key foreign-funded enterprises, and carry out dynamic monitoring and tracking services for the operation of those key enterprises.
Speed up the landing and construction of key foreign investment projects, continuously increase the protection of foreign investments, and make good use of special funds for foreign trade and economic development.
Ⅴ Deepen the reform of "decentralization-control-service" to create a good environment for foreign investment to participate in the construction of a new development pattern
Thoroughly carry out the establishment, revision and abolishment of corresponding regulations on Foreign Investment Law of the People's Republic of China, improve the management system for foreign investments, continuously enhance the convenience of foreign investments, and strengthen the news propaganda and guidance for public opinions.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=15939
If you have any question, please contact me.
Mr. Mike Chang (Partner)