Foreign-funded enterprises will get more 'bonuses' in China(2)

Groundless fears: foreign investors withdraw

Statistics released by the ministry revealed that newly established foreign-invested enterprises numbered 2276, up by 14 per cent year on year; and the application of foreign investment reached USD 7.81 billion, down by 17 per cent year on year.

The decrease of actual use of foreign investment stirred concerns that foreign enterprises are withdrawing from China. But Wang said that a survey of chambers of commerce of foreign enterprises including The European Union Chamber of Commerce in China showed that 85 per cent of foreign-funded enterprises are making profits in China and more than 90 per cent of foreign enterprises want to expand their business in China.

In a sampling survey sponsored by the United Nations Conference on Trade and Development, and directed towards investment promotion organizations in various countries and major transnational corporations, China is still the most attractive country to most foreign investors.

"This shows that the investment environment is improving, not worsening," says Wang.

Qiu Lixin, deputy director of the ministry's department of foreign investment administration pointed out that growing numbers of foreign investors, including the Fortune 500, not only think highly of existing conditions in China, but also rate its market potential.

Further advangtages in China

"The reform of registration systems in industry and commerce, led by the State Council, has enhanced investor confidence about China," says Qiu.

Statistics indicate that in the first half of 2014 the newly-attracted foreign investment reached USD63.3 billion, newly established enterprises exceeded 10 thousand, and contractual foreign investment exceeded USD117.3 billion, up by 2.2 per cent, 3.2 per cent and 9.5 per cent respectively.

"Further opening up set by the Third Plenary Session of the 18th Communist Party of China Central Committee will provide foreign enterprises with more opportunities," says Wang.

In addition, the ministry is taking measures to improve the investment environment, combining The Law of the PRC on Foreign Capital Enterprises, The Law of the PRC on Chinese-Foreign Equity Joint Ventures, and The Law of the PRC on Sino-Foreign Contractual Joint Ventures, with The Law on Foreign Investments.