General Office of Ministry of Commerce, Guiding Opinion on Attracting Foreign Investment Nationwide in 2007

商务部办公厅关于2007年全国吸收外商投资工作指导性意见

April 02, 2007 | BY

clpstaff &clp articles

Foreign investment in real property restricted in 2007.

Clp Reference: 2100/07.03.06 Promulgated: 2007-05-06

Issued: March 6 2007

Main Contents: The Opinion provides the statistics on foreign investment in China in 2006. The number of newly-established foreign-invested enterprises in China was 41,485, which marks a reduction of 5.76% compared to the previous year. The actual amount of foreign investment utilized was US$69.468 billion, a decrease of 4.06% compared to the previous year.

Section Five of the Opinion sets out the detailed work plan for attracting foreign investment in 2007, including:

(1) (a) to encourage foreign investment in: research and development centres, the high and new technology industry, the advanced manufacturing industry, modern agriculture, the service outsourcing industry, and the improvement and upgrading of technology in traditional industries; (b) to continue to encourage the establishment of regional headquarters, procurement centres, logistics centres, operating centres and training centres in China by multinational corporations; (c) to use effective measures to impose stringent restrictions on foreign investment in industries with high levels of energy consumption and pollution, and industries of low standard, and in real property; (d) to promote the transformation and upgrading of processing trade; (e) to promote the establishment of equity and cooperative joint ventures among foreign investors and private enterprises; and (f) to fully utilize overseas resources to develop the capital markets, and guide and regulate the strategic investment of foreign investors in listed companies (Item Three);

(2) to guide foreign investment towards modern service industries with high added-value such as finance, logistics, chain operations, information technology, and research and development of software and technology; and encourage multinational corporations to use China as an important base for undertaking their service outsourcing business (Item Five);

(3) to safeguard against monopolistic and hostile mergers and acquisitions, and maintain the control over major industries and key sectors to ensure the security of national economy (Item Six);

(4) to study and determine the indicator system for assessing the quality of foreign investment (Item Eight); and

(5) to encourage cooperation in research and development between multinational corporations and domestic research and development organizations or enterprises, and expand the technology spillover effect from foreign investment; and encourage the establishment of foreign-invested enterprises to carry out venture investment (Item 9).

Related Legislation: Foreign Investment Industrial Guidance Catalogue (Revised in 2004), Nov 30 2004, CLP 2005 No.1 (CLP Website); Catalogue for Encouraging Foreign Investment in High and New Technology Products, Jun 2 2003; and Catalogue for Guiding Foreign Investment in the Dominant Industries of the Central and Western Regions (2004 Revision), Jul 23 2004

clp reference:2100/07.03.06promulgated:2007-05-06

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