General

The report of the 20th National Congress of the Communist Party of China emphasizes that "China adheres to the basic national policy of opening up to the outside world.". The Central Economic Work Conference further proposed that "greater efforts should be made to attract and utilize foreign capital". Since the 18th National Congress of the Communist Party of China (CPC), China has implemented a more proactive opening-up strategy, becoming a major international trading partner for more than 140 countries and regions. The total volume of trade in goods ranks first in the world, attracting foreign investment and foreign investment ranks among the forefront in the world, forming a broader, broader, and deeper pattern of opening-up. On the new journey, we should continue to play the role of foreign capital and adhere to the active and effective use of foreign capital.

The practice since the reform and opening up has proven that foreign-invested enterprises have promoted the development of international trade, contributed a large amount of taxes, provided a variety of products and services, solved the problems of capital shortage, especially foreign exchange shortage, material supply shortage, and contributed to promoting China's integration into the international division of labor system. At present, the world is facing multiple challenges such as the food crisis and energy crisis. Some developed countries continue to raise interest rates, protectionism is rising, and competition among countries in attracting foreign capital is intensifying. The need for China to make greater efforts to attract and utilize foreign capital has increased.

Greater efforts to attract and utilize foreign capital are needed to enhance innovation capabilities and comprehensively optimize and upgrade the industrial structure. Currently, China's economic development environment, especially the relative advantage of production factors, has changed, and labor costs are gradually rising. There is an urgent need to promote technological innovation and break through industrial bottlenecks. Therefore, we must focus on improving our independent innovation capabilities, enhancing our original innovation, integrated innovation, and the ability to introduce, digest, absorb, and re innovate. By utilizing foreign capital, enterprises can learn and master the world's advanced technologies, and through transformation and innovation, achieve continuous improvement in technological innovation capabilities. China encourages and supports foreign-invested enterprises to establish research and development centers, effectively maintaining fair market competition, promoting various business entities to strengthen research and development and continuous innovation, and further improving resource allocation efficiency and innovation capabilities. Moreover, with the expansion of the field of foreign investment, some foreign invested enterprises have turned to high-tech and service fields, which is conducive to promoting the transformation and upgrading of China's industries.

Greater efforts to attract and utilize foreign capital are needed to enhance the status and competitiveness of the international division of labor. Currently, new technologies, new forms of business, and new models are emerging, and international trade and economic rules are further reshaped. Many foreign-invested enterprises possess a large number of advanced technologies, possess numerous technology patents, and have a research and development foundation and ability that are among the top in the world. They also have strong resource allocation capabilities, which can optimize the combination of various factors such as labor, land, technology, and resources worldwide. By using foreign capital to deeply participate in the international division of labor system, we can grasp the world's leading technologies and new trends in international rules, which is conducive to enhancing the status and competitiveness of the international division of labor.

"Using foreign capital is our long-term policy. China's policy on using foreign capital will not change, the protection of the legitimate rights and interests of foreign-invested enterprises will not change, and the direction of providing better services for enterprises from various countries to invest and prosper in China will not change.". From the perspective of the ratio of foreign direct investment to GDP, there is still room for improvement in the quality of China's utilization of foreign capital. The report of the 20th National Congress of the Communist Party of China proposes to "rely on China's super large-scale market advantage, attract global resource elements through domestic large-scale circulation, enhance the linkage effect of both domestic and international trade markets and resources, and improve the quality and level of international trade and investment cooperation.". This indicates the direction for further improving the level of foreign capital utilization. We should closely combine the use of foreign capital with accelerating the construction of a new development pattern, transforming the mode of economic development, and adjusting the economic structure, and make greater efforts to attract and utilize foreign capital.