The hottest Chinese manufacturing industry recover

2022-08-01
  • Detail

China's manufacturing industry recovers, and foreign investment opportunities are coming

due to the large-scale shutdown of factories and limited traffic, China's manufacturing output recorded the largest decline in history in February. However, with the control of the domestic epidemic and the relaxation of some restrictive measures, on April 1, the latest purchasing managers' index (PMI) for March released by the National Bureau of statistics was 52.0%, up 16.3 percentage points from February, exceeding market expectations

in the context of the global epidemic, the recovery of the manufacturing industry has made China a safe haven for many foreign-funded enterprises to continue their production, and has also brought many new opportunities

On March 19, the Ministry of Commerce solicited public opinions on the revision of the catalogue of industries encouraging foreign investment (2019 Edition). On April 1, wangdaoshu, the chief auditor of the State Administration of Taxation, said that he would cooperate with relevant departments to revise the catalogue of industries encouraging foreign investment to ensure the cleanness of experimental machines and the surrounding environment, so as to promote foreign investment in more fields to enjoy preferential policies such as taxation. In addition, the new negative list of foreign investment access is also being accelerated

1 new opportunities for China's manufacturing industry

with the spread of the global epidemic, many countries have experienced large-scale work stoppages, and China has become the region with the most stable production capacity and a safe haven for the world's manufacturing industry

maweifeng, chief representative of the Shanghai Representative Office of the British China Trade Association, said: British funded industrial enterprises have fully returned to work. A survey of British member enterprises at the end of February showed that most British companies are generally optimistic about China's economic development and the friendly relations between China and the UK

huangqifan, chairman of the industrial transformation Advisory Committee of Tsinghua Internet Industry Research Institute, believes that with the development of the epidemic, more and more foreign businessmen will see the development prospects of China's industrial chain market and are willing to invest in enterprises preparing to join China's industrial chain clusters. This trend will bring China a once-in-a-century historical opportunity for the development of the capital market and the establishment of industrial chain clusters

foreign trade and foreign investment have always been an important force in China's economic growth, and more than 80% of the items in the encouraged catalogue this time belong to the manufacturing industry, which supports more foreign investment in high-end manufacturing, intelligent manufacturing, green manufacturing and other fields

Tanqi, the managing partner of tax compliance and consulting department of Ernst & Young Greater China, told the international finance news that under the background of China's transformation from traditional manufacturing to high-end manufacturing, this revision of the catalogue is in line with the development direction of the national industrial planning and can accurately hit the current foreign investment demand. With the increasing cost of human resources in mainland China, the traditional labor-intensive manufacturing industry is gradually being transferred to low-cost areas in the global industrial division. In the process of industrial transfer, China with higher quality labor resources will become a hot spot for foreign investment in high-end manufacturing sites

however, due to the impact of the recent global epidemic, Tanqi said that investors tend to be conservative about the arrangement of new foreign investment in the short term. Considering that the plan of full resumption of work and production may also be postponed to the second and third quarters of this year, investors may be more inclined to postpone or even reconsider the global investment plan in the short term. Zhang Ting, the founder and CEO of British enterprises, also told the international finance news that some foreign enterprises will not consider foreign investment until the epidemic in their own countries or regions has passed

however, Zhang Ting believes that the current time point is very good. Now she is asking for revision opinions and revising the catalogue so that more foreign-funded enterprises can understand China's new policies. In the future, it is possible to attract more foreign investors to settle in. Tanqi also said that in the long run, the strong cohesion and efficient execution of Chinese society in controlling the epidemic has enabled investors to see the greater potential of China as an investment destination. The release of the new policy can just prepare for more high-quality foreign investment in the near future

2 foreign investment enjoys policy dividends

under the impact of the global epidemic, China's manufacturing industry has ushered in new opportunities. While developing, China also hopes to bring more policy dividends to foreign-funded enterprises

zongchangqing, director of the foreign investment department of the Ministry of Commerce, pointed out that by revising and expanding the encouragement catalogue and increasing the encouragement fields, more foreign-invested enterprises can enjoy preferential policies, thus reducing costs, hedging the adverse effects of the epidemic, enhancing the overall competitiveness of the industry, and further stabilizing and improving the capacity and level of important industrial chains and supply chains

in order to attract foreign investment, a number of preferential policies have been clearly mentioned in the catalogue, including the exemption of tariff on imported self-use equipment within the total investment, the priority of land supply for projects with intensive land use, and the determination of the land transfer base price at not less than 70% of the lowest price standard for industrial land transfer

Tanqi believes that the series of preferential policies given by the state are based on the actual needs of foreign investors and aimed at creating a friendly investment environment for more high-quality investment. When choosing an investment destination, investors will make a comprehensive decision based on the needs of their own supply chain layout and in combination with the position of the target region in the division of labor in the regional industrial chain. Among them, the business environment of the investment destination and the policy preferences provided by the government are also considered in the decision-making of investment location. The supporting preferential policies that the Chinese government can provide will help to increase the attractiveness of our country to foreign investment in the overall assessment process, and will play a positive role in attracting investment

at present, relevant departments are speeding up the preparation of the new negative list of foreign investment access. The state also makes it a top priority to promote the full resumption of work and production of foreign-funded enterprises, so as to make the implementation of the relief policy effective and enhance the sense of gain of foreign-funded enterprises

Zhang Ting said that in addition to tax reduction and preferential policies, the government's relaxation of market access is good for many foreign businessmen. For example, one of our customers is a British brand of baby products that has been produced in China for more than ten years. However, the installation of universal testing machine gives users a headache about market access because of its tensile strength, force elongation, force value of force elongation and yield strength. It is still unable to sell its products in China. Therefore, if the market 2, blending and alloy technology access can be relaxed, foreign investors can produce in China and sell in China, which will be a good thing for foreign investors

some analysts pointed out that multi-directional welfare policies can effectively help enterprises reduce institutional transaction costs. The continuous optimization of the business environment, the continuous reduction of the access restrictions of foreign-funded enterprises and the hidden barriers to operation will also enable foreign businessmen to enjoy China's professional manufacturing, fair competition with domestic enterprises, share the Chinese market and enjoy China's development dividends

Copyright © 2011 JIN SHI