The State Council executive meeting held on Oct 8 decided to create a level playing field for both domestic and foreign companies as to attract more overseas investments and improve China’s business environment.
According to the meeting, foreign investors are only required to register their investments in the government system via the internet, as long as their business is not on a “negative list”, and such records should not be the precondition for business and foreign exchange registration.
The government estimates that as a key reform of China’s foreign investment management the measure will cut more than 95 percent of procedures, demonstrating its determination to optimize the business environment under the rule of law.
Despite overall economic slowdown and weak recovery, China remains as the first destination of foreign investment for developing nations in the past 24 years.
According to a survey by the American Chamber of Commerce, more than 60% of member enterprises listed China in the top three investment destinations, and 68% of members plan to expand investment in China.
Such confidence derives from China’s constant efforts to improve the rule of law and facilitate a more open and convenient business environment. Data shows that the State Council has cut and delegated 618 administrative approval items since 2013, ending non-administrative approval.
According to four legal amendments passed by the Standing Committee of the National People’s Congress, the “negative list” system for foreign investments has been rolled out nationwide since Oct 1, indicating a more standard, transparent and fair environment.
“For those [who] only care about preferential policies and easy money, they may think China’s investment environment is not as good as the past, but it is quite another case for companies with real insight and competitiveness for long-term development in China”, said Shen Danyang, spokesman of the Ministry of Commerce.
China will continue to attract foreign investments in an effective way, keep its stability in the long run and build a better and more predictable investment environment.