Position on welcoming outside investors will remain unchanged, official said
China will carefully scrutinize foreign investment that affects or could affect national security, while avoiding overly broad actions to better guarantee and protect the legitimate rights and interests of foreign investment, the Commerce Ministry said Thursday.
The government will implement, in accordance with the principles of necessity and reason, these political measures to effectively prevent and resolve national security risks, said Gao Feng, spokesperson for the ministry.
The official made the remarks at a weekly press conference, adding that it is international practice to conduct such safety reviews.
China issued rules on foreign investment security review procedures to protect national security while stimulating foreign investment in December last year. The rules specified provisions regarding the foreign investment security review mechanism, including the types of investments subject to review, scope and review procedures, among other areas.
The official reiterated that the trend to encourage more foreign-invested enterprises to expand in China will not change.
The ministry will work with other branches of government to promote wider, wider and deeper openness, fully implement the Foreign Investment Law and other related regulations, maintain a fair competition order and better protect legitimate rights and interests of foreign investment, during the period of China’s 14th Five-Year Plan (2021-25), Gao said.
The Chinese government will continue to improve its services for foreign-funded companies and projects to create a market-oriented, legalized and internationalized business environment, he added.
Zhang Yongjun, a researcher at the China Center for International Economic Exchange in Beijing, said the security review rules are not a protectionist measure or a refusal to open up further. Instead, they are in line with China’s commitment to open up on all fronts and aim to strengthen the security mechanism for openness.
Eager to attract more foreign direct investment, China will continue to ease market access for foreign capital and guide these investors to better integrate into the domestic economic cycle in the coming years, Wang said. Jun, chief economist of Zhongyuan Bank.
Impacted by the COVID-19 pandemic and the mismatch of global supply and demand, the Chinese economy has nonetheless achieved healthy growth, satisfying global demand, Wang said.
“This reality has helped attract more global companies to strengthen their positions in joint ventures, onshore supply chains and increase spending to secure market share across China,” he said at the meeting. ‘an economic forum hosted by China News Service in Beijing on Thursday.
China’s actual use of foreign capital soared to 607.84 billion yuan ($ 94.1 billion) in the first half. This is an increase of 28.7% year-on-year and 27.1% compared to the same period in 2019, according to the Ministry of Commerce.
With many measures including streamlined approvals, enhanced services and reduced barriers, China has continued to create a strong business environment for global investors, said Mark Edwards, general manager of China operations at Diageo Plc, a producer. of London-based spirits covering a wide range of alcohol categories, including Scotch whiskey, gin and beer.
“These measures have stimulated the integration and innovation of systems, accelerated the release of political dividends, achieved effective intergovernmental collaboration and created a high-quality, legalized, international and practical business environment,” he said.