General

Singapore's Nippon Nippon invested a 550 million yuan solid waste treatment project in Kaifeng Lankao, and Hefei became one of the world's largest manufacturing bases of Corning, a global leader in material technology innovation. Japanese SMC will invest 100 million in the first phase of Changzhou High-tech Zone. U.S. dollars to build an East China base integrating high-end pneumatic component production, R&D and sales... Our inland areas are becoming a hot spot for foreign investment.

According to data from the Ministry of Commerce, from January to June 2021, the actual use of foreign capital in China's eastern, central, and western regions increased by 29.7%, 33.6%, and 6.1%, respectively. In the first three quarters of this year, the actual use of foreign capital in China's eastern, central and western regions increased by 19.8%, 29% and 4.1% respectively.

It is not difficult to see from the data that the absorption of foreign capital in the central region is stepping into an acceleration lane. For example, in the first half of this year, Henan newly established 150 foreign-invested enterprises, and actually absorbed 10.83 billion U.S. dollars of foreign capital, an increase of 8% year-on-year; Jiangxi newly established 304 foreign-invested enterprises, an increase of 37.56%.

"Under the dual promotion of the country’s central region’s rise strategy and the construction of the “One Belt and One Road”, the business environment in the central region is gradually developing in a good direction, and the country has also positioned the central region as a base for the development of modern equipment manufacturing and high-tech industries. The region is working hard to promote high-quality development and dual-cycle development by accelerating the absorption and utilization of foreign capital and undertaking the industrial transfer in the east." Zhang Jianping, director of the Regional Economic Cooperation Research Center of the Ministry of Commerce Research Institute, said that at present, the economic growth potential of the central region has been released. The GDP growth rate has surpassed that of the eastern region. For this reason, foreign investment continues to be optimistic about the central region. Compared with the eastern region, the central region has relative price advantages in terms of production factors such as labor, land, and energy, and these have also become more favorable conditions for the absorption and utilization of foreign capital in the central region.

Professor Sang Baichuan, Dean and Professor of the Institute of International Economics of the University of International Business and Economics, analyzed that the reason why the central region has become the fastest growing region in attracting foreign capital is due to the continuous optimization of the business environment in some central economic zones in the central region, which is undertaking the process of industrial transfer. China has gradually formed a regional economic growth pole, with relatively strong industrial supporting capabilities. In addition, the central economic zone in the central region has a large number of human resources and a rich talent reserve. These advantages have attracted some large-scale foreign investment projects to land.

At present, the central region of China has made more and more obvious achievements in opening up to the outside world. Can the western region learn from the experience of the central region?

In Zhang Jianping's view, the western region should first emancipate the mind, change concepts, reshape the relationship between government and enterprises, and strengthen the government's services to enterprises. In terms of the business environment, not only must the hardware infrastructure be improved, but the management system and management mechanism should also be in accordance with the requirements of the country’s new round of reform and opening up, and based on institutional openings such as rules and standards, to create a better business environment. Let foreign investors feel more at ease.

Sang Baichuan believes that the western region should focus on building a new platform for absorbing foreign investment, forming an excellent business environment in some areas, and forming an investment environment that is "pro-business and friendly to businessmen"; efforts should be made to promote the reform of the administrative management system and simplify administrative examination and approval. Matters, improve administrative efficiency, and form a social consensus to actively attract foreign investment.

Zhang Jianping said that the western region has great potential for absorbing and utilizing foreign capital. On the one hand, its base for absorbing foreign capital in the past was relatively small. On the other hand, through opening up development and improving the business environment, the potential of the western region is constantly being released. "For example, Shaanxi received tens of billions of dollars in chip investment from Samsung, which is a typical case. It can be said that cities in western regions such as Xi'an, Chengdu, and Chongqing will be more attractive to foreign investment in the future."

With the continuous advancement of the “Belt and Road” construction, the western region is gradually moving from the hinterland that was originally open to the outside world to the forefront of opening up. Under the background that China pays more attention to the gradient transfer of industries to the central and western regions in attracting foreign investment, how can the western region improve its ability to undertake industrial transfer, and thereby improve its ability to absorb and utilize foreign capital?

"Most of the provinces in the western region are border provinces, and it is more convenient to connect with neighboring countries and regions." Sang Baichuan said that the western region should give full play to its own advantages and make use of border economic cooperation zones, key development and opening test zones, and central and western regions that use foreign capital. Preferential policies to form a good business environment for foreign investment. Give full play to the regional industry and resource advantages, form characteristic industrial clusters, and attract foreign investment. Actively linking up with the "One Belt One Road" initiative, taking investment from neighboring countries and strengthening economic ties with neighboring countries are important tasks of opening up.

Zhang Jianping suggested that the western region should speed up the implementation of the country’s new foreign investment law, improve local regulations on the use of foreign investment, and build a legal, transparent, and international business environment; continue to make great efforts in the protection of infrastructure such as water supply, power supply, and gas supply. Strength; form an integrated and seamless integrated transportation system; enhance service awareness, provide more refined management and services for different industries, and improve the efficiency and capabilities of government service enterprises.

Zhang Jianping said that the pilot free trade zone is currently the platform with the highest degree of opening to the outside world in China, and it is very attractive to the new round of agglomeration of high value-added manufacturing and service industries. Therefore, the pilot free trade zones in Shaanxi, Sichuan, Chongqing, and Yunnan will also become very favorable platforms for absorbing and utilizing foreign capital.

“The western border provinces must not go far in the process of using foreign capital, and they must be down-to-earth.” Sang Baichuan emphasized that the absorption of foreign capital in the western region should be in line with the local economic conditions and economic structure. In the process of promoting agricultural industrialization, it is necessary to give full play to the regional resource advantages, create good institutional conditions, and ensure stable returns for foreign investment.