(A) continue to adhere to the active, rational and effective utilization of foreign capital policy
China's utilization of foreign capital has ranked among the forefront of developing countries in terms of scale, but the stock of FDI is still lower than the world average, in the future, we should continue to expand the scale of utilization of foreign capital at the same time, the quality of the utilization of foreign capital to improve the utilization of foreign capital as the focus of the utilization of foreign capital work. We should correctly handle the relationship between expanding the scale of utilization of foreign capital and improving the quality of foreign capital; expanding the scale is the basis and prerequisite for improving the quality, and improving the quality provides a guarantee and impetus for expanding the scale. To further improve the quality of foreign capital utilization, to better play a positive role in improving the quality of the national economy, promote the strategic adjustment of economic structure, accelerate the new road to industrialization, and promote the coordinated development of the economy, society and the environment.
(ii) seize the opportunity of optimization and restructuring of global production factors and industrial transfer, and further optimize the industrial and regional structure of foreign investment
Adapt to the trend of international industrial restructuring and accelerated scientific and technological progress, and focus on encouraging foreign investment in high-tech industries and advanced manufacturing industries, strengthening the domestic industrial support, extending the industrial chain, and giving better play to the technological spillover effect of foreign-invested enterprises to promote the transformation and upgrading of processing trade. Processing trade transformation and upgrading. Promote multinational corporations to set up more regional headquarters and investment companies in China, so as to improve the overall investment effectiveness of multinational corporations. Support multinational corporations to set up export procurement centers, encourage the expansion of procurement and export in China, and gain more access to their global production and sales networks. Attract multinational corporations to set up service outsourcing enterprises, and explore the establishment of pilot bases for service outsourcing in regions with better economic conditions, relatively sound infrastructure and a concentration of specialized talents. Continue to support foreign investment in the development of labor-intensive industries.
Grab the introduction of relevant supporting measures, and make every effort to create policy advantages, and promote foreign investment to participate in the development of the western region, the rise of central China and the revitalization of the old industrial bases in the northeastern region.
(C) actively and steadily promote the opening up of the service sector
Seriously fulfill the commitment to join the WTO, according to the needs of the national economic development, focused and step-by-step to expand the opening up of the service sector. For accounting, telecommunications and other services, the implementation of a comprehensive opening; for commercial circulation, urban infrastructure construction, health care, culture and education and other services, to summarize the experience on the basis of steadily expanding the opening; banking, securities, insurance and other services, according to the level of China's financial regulatory level and the affordability of the national economy, the implementation of prudent opening.
(D) constantly innovate the way of utilizing foreign capital and broaden the channels of utilizing foreign capital
In line with the global trend of rapid development of cross-border mergers and acquisitions (M&A), we are actively guiding foreign investors to merge with and acquire domestic enterprises. In accordance with the WTO commitments, according to the development of China's capital market status quo, and steadily promote the opening of the capital market to the outside world, and continue to pilot the system of qualified foreign institutional investors, to support the eligible mainland enterprises to issue securities abroad and listed. We will strictly control the scale and structure of foreign debt, emphasize the rationality, effectiveness and safety of the use of foreign debt, and effectively prevent financial and foreign debt risks.
(V) Vigorously improve the environment for foreign investment, and further standardize investment promotion
Continue to maintain the continuity and stability of policies. The full implementation of the Administrative Licensing Law, vigorously promote administration in accordance with the law, and further reduce and standardize the administrative examination and approval of foreign investment, and improve the efficiency of examination and approval. The government has effectively changed its functions and focused its efforts on serving market players and creating a favorable environment for development. Accelerate the construction of foreign intermediary service organizations. In-depth special action to protect intellectual property rights, increase law enforcement, punish infringement according to law, and strengthen the protection of intellectual property rights.
Investment promotion should be tailored to local conditions, focusing on practical results, to prevent the introduction of preferential policies in disguise, blind comparison, layers of pressure indicators and other disorderly competitive behavior. Drawing on foreign experience, combined with China's actuality, to promote the establishment of government coordination and guidance, investment promotion professional institutions, intermediary institutions and enterprises to participate in a wide range of investment promotion mechanism, to encourage and regulate the development of private investment promotion institutions. Improve the way of investment promotion, better build exhibition, e-commerce, website and other investment platforms, to improve the effect of investment promotion.
(F) Strengthening the guidance and supervision of foreign investment
According to the needs of the development and change of the situation, the timely revision of the "Provisions for Guiding the Direction of Foreign Investment" and the "Catalogue of Guidance for Foreign-invested Industries", and the approval of some overheated industries for foreign-invested projects from the strict and resolute suppression of some overheated industries of blind investment and low-level expansion. For restricted foreign investment projects with high energy consumption and high pollution, raise the threshold of entry, strictly enforce environmental protection and other examination and approval procedures, and cancel relevant preferential measures. As soon as possible to formulate and improve the relevant laws and regulations, urge foreign-invested enterprises to effectively fulfill their social responsibilities to prevent the formation of monopolies.
Two
- is the scale of foreign investment absorption. On the scale of China's foreign capital absorption, there are two diametrically opposed views. Some people believe that, in view of the role of foreign investment in China's economic growth, China should also seize the opportunity of international industrial transfer, improve the policy environment, and further expand the scale of foreign investment. Some people believe that the scale of foreign investment in China has been very large, to a certain extent, compressed the development of domestic enterprises, multinational corporations in some industries have a tendency to form a monopoly, over-reliance on foreign investment increases the risk of economic operation, there will be East Asia and Latin America has occurred in the problem. How should we look at these two opinions? How can China better deal with the relationship between foreign capital and domestic capital? How to avoid the monopoly of multinational corporations and the absorption of foreign investment "Latin Americanization" problem?
Second, the role of foreign investment. Since the reform and opening up, the introduction of foreign investment in China's economic development of the role of eye **** witnessed. But some people believe that the role of foreign investment is mainly reflected in the promotion of export growth and job creation, etc., the role of technological progress and industrial upgrading is not obvious. At present, the competitiveness of Chinese enterprises is still more reflected in the cost and price, the lack of core technology with independent intellectual property rights, the lack of internationally recognized brands. How big is the role of absorbing foreign capital in promoting China's technological progress and industrial upgrading? How to introduce foreign capital in China at the same time the introduction of technology, and the introduction of technology and independent development combined?
Third, the policy of absorbing foreign capital. Since the reform and opening up, China has given certain preferential policies to foreign direct investment. With the establishment and continuous improvement of China's market economic system, the content of preferential policies for foreign investment is less and less, the scope of enterprises enjoying preferential treatment is also smaller and smaller, but the tax and other preferential policies have been retained. In response to this situation, some people believe that, at present, countries around the world have introduced preferential policies, the international competition for attracting foreign investment is more intense, China at least can not cancel the current preferential policies. Others believe that the rapid growth of China's absorption of foreign capital depends on the advantages of labor resources, market capacity, industrial support advantages, infrastructure advantages and other aspects, preferential policies are only one of them, the role of preferential policies can not be overestimated; at the same time, to give preferential treatment of foreign investment is not in line with the principle of national treatment, and is not conducive to the foreign-invested enterprises and domestic enterprises of the equal competition. Exactly how to look at this issue, whether foreign investment should continue to give policy concessions?
Fourth, the absorption of outsourcing of services. According to UNCTAD's recently released "World Investment Report 2004", global transnational direct investment has shifted from manufacturing outsourcing to services outsourcing, services outsourcing has become the main engine of global transnational direct investment, the global outsourcing market in the next few years is expected to increase at a rate of 30% -40% per annum, the value of outsourcing in 2005 will increase to 585 billion U.S. dollars, will further increase to 1.2 billion in 2007, the value of outsourcing. In 2005, the total value of service outsourcing will increase to US$585 billion, and in 2007, it will further increase to US$1.2 trillion.Since the 1990s, multinational corporations (MNCs) have shifted their assembling and processing processes to China through outsourcing of manufacturing industries, which has formed the climax of foreign investment in China. In recent years, multinational corporations have begun to transfer some of their internal service operations to China. Taking IBM as an example, it has set up a joint venture with the Ministry of Railways of China to establish the "Blue Express" company, which utilizes the railway network and IBM's information technology to provide IT equipment and software maintenance for other companies. Undoubtedly, China faces a historic opportunity to absorb service outsourcing. The question is whether China's advantages in absorbing the transfer of manufacturing will be equally effective in absorbing service outsourcing? In addition to these advantages, China should do a better job in absorbing service outsourcing?
As a response to Mr. Fu's initiative, this paper offers some thoughts on the role and scale of foreign-invested enterprises (FIEs) and their direct investment activities (FDI) in China's economic development.
First, the promotion of domestic enterprises and industrial development should be the standard for the introduction of foreign investment in China
The domestic understanding of the scale and role of foreign-invested enterprises (FIEs) is mainly based on the so-called "double-gap", "bun", or developmentalist theories, that is, FIEs and their FDI activities contribute to the development of three points: (1) FIEs and their direct investment activities contribute to the development of China. Three points: (1) can increase local savings, thus raising the local accumulation rate and economic growth rate; (2) can ease the local foreign exchange constraints, so that China can import more machinery, equipment, etc.; (3) can bring new technology, management skills, etc.. That being the case, the more foreign capital inflows, the better; and the bigger the role in China's economy, the better.
In fact, it is a distortion of the essential characteristics of multinational corporations and their FDI activities to regard them as supplements and suppliers to the host country's shortfalls in capital, foreign exchange, technology, management skills, etc. FDI, as industrial capital, is embodied in its essence in the uninterrupted movement of the "flow"; and it always exists as a whole. As industrial capital, FDI's essence is embodied in an unbroken movement like a "flow"; and it always exists as a whole, and dismembered capital or technology does not represent FDI itself. Similarly, the TNC is always a self-interested enterprise, never a "savior". In addition, the resources brought in by multinational corporations (capital, foreign exchange, technology, management skills, etc.) and their FDI activities as completely complementary to China's economic development, but also one-sided. This "complementary relationship" exists only in smaller host countries that are fully dependent on FIEs, because there TNCs are the protagonists and the FDI inflows themselves constitute the local industrial capital circulation system. However, this relationship does not hold for large developing countries that are not fully dependent on TNCs. In the long run, FDI intervention is only a means to promote local economic development. At the same time, these theories are only suitable for doing marginal analysis and FDI flow is relatively small situation, but not suitable for analyzing the development of China, such as after decades of development, FDI stock has been a lot of the situation.
Obviously, China needs a new theoretical basis and a new strategy for introducing FDI.
As far as the introduction of FDI for the promotion of domestic economic development is concerned, there are generally two successful strategies: one is the model of dependent development that relies entirely on multinational corporations and their FDI, as represented by Singapore. This model is only suitable for countries and regions with a favorable geographical location and a small population; or with relatively abundant resources and a small population. Theoretically, the conditions for the choice of the dependency model exist as long as the host country possesses one or more of the inputs or raw materials necessary for the production of FDI, and such resources are so abundant in relation to the population of the host country that it is "possible to modernize" life simply by relying on the rents of these factors of production. From the perspective of TNCs, such a combination is also consistent with their vertically integrated business strategies. The Singaporean model of dependent development is a labor-dependent model, based on the improvement of labor quality. The second is a self-reliant development model that relies on local enterprises and makes full use of the beneficial influence of TNCs, as represented by South Korea and Taiwan, China. Developing countries and regions that are not suitable for choosing the dependent development model can only take the path of self-sustaining development. Contrary to dependent development, which relies entirely on TNCs, self-sustaining development is a mode of economic development in which local national enterprises are the mainstay. It is through the growth and development of national enterprises to realize the full realization of the comparative advantages of national resources, thus promoting the healthy development of the whole economy.
In contrast, there are two kinds of failed strategies: one is the self-sufficient development model that completely excludes multinational corporations and their favorable influence, represented by China before the reform and opening up and India in the same period. The second is the pathological dependency model that does not meet the conditions for adopting the dependency model of development, but has introduced too much foreign direct investment, as represented by Brazil, Mexico and Argentina in Latin America.
China's economic development conditions are only suitable for the adoption of self-reliant development model. Self-reliant development is different from complete exclusion, closed-door style "self-reliance, independence", and is not the introduction of foreign direct investment is completely unlimited. It is always centered on nurturing and promoting the growth and development of national enterprises. Relaxing or strengthening control over FDI is only a means to that end. Therefore, the entry of FDI should be limited to the extent that it does not jeopardize the growth of Chinese enterprises; at the same time, multinationals are only a supporting role in promoting the development of Chinese enterprises, not the other way around. An inflow of FDI that exceeds these limits will curb the realization of China's economic development potential (i.e., its comparative advantage in resources) and undermine the foundations of self-sustaining development (i.e., Chinese enterprises). On the other hand, if the foreign direct investment intervention is moderate, the multinational corporations will also promote the growth of Chinese enterprises and the realization of the goal of economic self-reliance.
Since the scale and grade of the introduction of foreign direct investment should be limited by the competitiveness of Chinese enterprises, it is appropriate to introduce more foreign investment in industries where Chinese enterprises are more competitive, and the scale of multinational corporations can be larger. In industries where Chinese enterprises are less competitive or in emerging industries, the number of foreign investments to be introduced should be limited and the scale of TNCs should be basically on a par with the level of Chinese enterprises. Similarly, the status and role of multinational corporations in China's economy should be aimed at promoting the growth and development of local Chinese enterprises.
That kind of disregard for local enterprises and industries, absorption, digestion capacity, and even jeopardize the development of local enterprises and industries, the pure pursuit of economic growth type of foreign investment introduction practices should be corrected. Similarly, the kind of theoretical discussions and practical work, always a large developing country like China can only take the road of "self-reliant development" and some can take the "dependent development" mode of small countries, such as Singapore, analogous or comparative, so as to mislead the Chinese The practice of making analogies or comparisons with large developing countries and some small countries that can follow the "dependent development" model, such as Singapore, and thus misleading China about the correct choice of strategy for the introduction of foreign capital must also be clarified and corrected. In the introduction of foreign investment in the future, China should contribute to the development of how many local enterprises and industrial growth as a measure of the introduction of foreign investment in a region, rather than one-sidedly look at the contribution to the GDP growth indicators.