Foreign investment in Hubei in 2015 In 2015, the actual use of foreign investment in Hubei hit 8.95 billion US dollars, recording new high in history.
During the year, some 944 foreign-invested enterprises was registered in Hubei, up 17.85 percent on year, adding the total number of foreign-invested enterprises in Hubei to 8,646 units by the end of 2015.
Meanwhile, some 241 enterprises of the World Top 500 have set foot in Hubei by the end of 2015, ranking No.1 among China's central provinces.
By learning experience from Shanghai in pilot free trade zone development, Hubei has achieved fast expansion of use of foreign investment to energy, public infrastructure, transport, commercial trade, and information sectors, and increased use of foreign investment in emerging sectors like innovative investment, petty loans, financing and leasing, and warrant in recent years.
Meanwhile, foreign investment in Hubei has been used in new ways, such foreign capital mergers and acquisitions and capital and share increase. An increasing number of transnational enterprises have set up headquarters and R&D centers in Hubei, participating in construction of public science and technological service platforms.
Favorable environment for foreign investment in Hubei
To create better environment for foreign investors, Hubei Province launched 137 reform and innovation programs in Wuhan Donghu high-tech zone, Xiangyang and Yichang, covering reforms of administrative procedure and government function, promotion of free investment, convenient trade, and innovation in technology and finance industries.
By implementing the replicable experience of Shanghai Free Trade Zone in pilot reforms, Hubei explored its own replicable and applicable experiences by adopting international norms for systems and mechanism. Hubei has been vigorously promoting construction of large channels, large platforms, and large clearances to prioritize its open tunnel to foreign investors. The Sino-Europe cargo train from Wuhan to Germany via West Asian countries has been a key logistic route between Asia and Europe with the second largest cargo delivery. The international direct flights setting off from Wuhan Tianhe Airport increased to 7 lines in 2010 to 39 lines in 2015, and the container express from Yangluo port to Japan and the Republic of Korea has been shortened to 7-8 days from 12-16 days.
Regional encouraging policies for foreign investment in Hubei
Wuhan, Jingmen, Xiangyang and other cities have adopted preferential policies on land, capital, taxation, finance and administrative approvals to attract investors. Wuhan Donghu National Innovation Demonstration Zone announced 10 preferential means to facilitate independent innovation in December 2014. The encouraging policies include establishing e-license mechanism, supporting the business pattern of "incubation+venture capital", and setting up entrepreneurship risk aiding fund.
Jingmen has promised to give prior support to projects in Jingmen Economic Development Zone in a bid to apply for national high-tech campaigns and win financial assistance.
Xiangyang municipal government has issued the Opinions for Promoting the Development of Equity Investment Industry, giving preferential policies to encourage equity investment companies and equity investment management companies registered in the city to invest in the automobile and parts, modern equipment manufacturing, new energy automobile, new energy and advanced materials, electronics and information, chemical and pharmaceutical, further processing of agricultural products, and other pillar industries.
Shiyan encourages financial institutions to set up branches in the city by offering financial incentives. Tianmen encourages industrial companies to launch their businesses in the city by reducing charges for administrative approvals and simplifying related procedures. -
Suggestions for foreign investment Hubei Province
is competitive in a bunch of industries, which may be among top choices for foreign investment. Automotive, metallurgy, machinery, power, chemical, electronics and information, textile, and building materials are the eight pillar industries of Hubei Province. As one of China's primary grain producing areas, the province has two agricultural bases namely Jianghan Plain and North Hubei Downland.
Additionally, Hubei takes the lead in terms of the R&D level and production capacity in the photoelectron information, advanced materials, bioengineering and advanced medical, aviation, laser, numerical control technology, computer software development, and other high-tech sectors across China. Currently, foreign investment in Hubei mainly focuses on manufacturing industry. To balance and expand use of foreign investment, Hubei Province may offer more favorable conditions to attract foreign investment in advanced manufacturing, high-tech, and modern service industries in future.
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