Based on the piloting free trade zones (FTZs), the Ministry of Commerce (MOC) is working on the feasibility of expanding the negative list nationwide. The admittance restriction for foreign funds in areas like education, culture, finance and general manufacturing industry will be further relaxed, as disclosed by vice-minister of commerce Wang Shouwen on a press conference held on Aug. 23 for the 19th China International Fair for Investment & Trade.

 
According to Wang, as of end July 2016, 850,000 foreign companies have been set up in China, involving 1.7 trillion U.S. dollars foreign funds and ranking top among developing countries for the 24th consecutive year. During the January-July period of 2016, nearly 16,000 foreign companies are newly established across China, involving 77.13 billion U.S. dollars of foreign funds. The structure of foreign funds being utilized is further improved as evidenced by the rapidly growing foreign investment in the service industry. The foreign funds attracted by the high-tech service industry even increase by 98.2 percent. The investment by the European Union (EU) and the U.S. in China moves up 35.6 percent and 129.8 percent, respectively. The foreign funds attracted by the western part of China expand 31 percent. In addition, the utilization of foreign funds also becomes increasingly diversified. Merger and reorganization contribute over 20 percent of the foreign funds being attracted.
 
The investigation of the United Nations Conference on Trade and Development shows that China is still one of the most promising investment destinations. Investigations by organizations like the American Chamber of Commerce in China, European Union Chamber of Commerce in China and Japan-China Investment Promotion Organization also show that most of the surveyed enterprises are still rosy about Chinese market.
 
“Thanks to the series of measures adopted by the central and local governments, China achieves steady growth in attracting foreign funds under the grim situations at home and abroad this year.” Wang pointed out that the measures being adopted include following investment management system that centers on the negative list implemented in piloting FTZs, piloting the opening of the service industry in Beijing, constantly improving supervision during and after events, intensifying protection of intellectual property and etc.
 
To attract more foreign funds, China will enlarge the scope of opening up and provide foreign investment with stable, transparent and expectable business environment. Specific policy measures can be classified into the following three levels:
 
Firstly, enlarging the scope of opening up. Wang said that the scope of opening up will be further expanded later. Research will be made about relaxing admittance restriction for foreign funds in areas like education, culture, finance and the general manufacturing industry.
 
Secondly, optimizing the arrangement of foreign investment. It is introduced that the MOC will move faster in revising the List of Competitive Industries for Foreign Investment in Central and Western Regions of China. Foreign investment is encouraged in the central and western regions, and the transfer of processing trade to the western regions is highly encouraged too. Key fields in the border cooperation area, cross-border cooperation area and the opening up of areas along the border will be supported. Investment environment will be constantly improved.
 
Thirdly, optimizing investment environment and the laws and regulations. At present, relevant laws concerning foreign investment are now soliciting public opinions. The MOC is researching the feasibility of promoting the negative list implemented in the FTZs, especially the feasibility of promoting fields in the negative list that have passed the pressure tests of the FTZs, across China.

Translated by Jennifer