CHINA China's manufacturing sector to further open up

CHINA

China's manufacturing sector to further open up

China Daily

07:24, October 26, 2022

An employee works on the production line of a foreign-funded machinery manufacturer in Suzhou, Jiangsu province. ZHAI HUIYONG/FOR CHINA DAILY

China's latest efforts to further open its market to foreign investment in the manufacturing sector and provide easier border entry arrangements for foreign executives will inject strong impetus into the country's high-quality development, safeguard the stability and security of global industrial and supply chains, and drive global economic recovery, experts said on Tuesday.

Their comments came after a notice released by the National Development and Reform Commission and five other central government departments encouraging foreign investment in high-end equipment, basic components and key parts for advanced manufacturing as well as high-tech industries.

The country will take further steps to facilitate the border entry and exit of executives and technicians of multinationals and foreign-invested companies and their families, under the premise of sound COVID-19 pandemic prevention and control, according to the notice.

China will also encourage foreign investment in research and development, design and modern logistics in the realm of modern services, as well as innovation and applications related to new energy, green and low-carbon technologies, it added.

Long Haibo, a senior researcher at the Development Research Center of the State Council, said the latest policy measures showcased China's unwavering determination to expand high-level opening-up, optimize foreign investment structure and attract more global stakeholders to invest and develop in the country.

Noting that advanced manufacturing is crucial for developing the real economy and advancing new industrialization, Long said the concrete steps to facilitate foreign investment in China's manufacturing segment are of great significance in further bolstering the country's high-quality economic development and ensuring the security and stability of industrial and supply chains.

"In particular, the measure aimed at facilitating the exchange of business personnel from foreign companies is conducive to further shoring up the confidence of multinationals and accelerating the implementation of major foreign investment projects," he said.

Data from the Ministry of Industry and Information Technology showed that China accounted for nearly 30 percent of global manufacturing output in 2021, up from 22.5 percent in 2012, and maintained its title as the world's largest manufacturing country.

The transformation and upgrading of manufacturing is playing a vital role in promoting China's high-quality development, said Pan He­lin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School.

The government's latest move to promote foreign investment in the manufacturing sector and optimize the investment environment is expected to boost the development of high-end manufacturing and deepen international cooperation in scientific and technological innovation, Pan added.

China's actual use of foreign direct investment surged 16.4 percent year-on-year to 892.7 billion yuan ($122 billion) in the first eight months of this year, according to the Ministry of Commerce. Specifically, FDI in high-tech manufacturing rose 43.1 percent from the same period a year ago.

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