China’s Industry Policy Studies
China started its reform and opening-up drive three decades ago, the affluent inflow of foreign direct investment (FDI) played an essential role in boosting China’s economy growth and creating jobs. To further encourage the move of Chinese ongoing internationalization while sustain the contributions of FDI, China’s industry policies are endeavored to boost more foreign investment in high-tech and new energy sectors that congruent with the nation's industry upgrading goals.
With the rapid development of Chinese economy, more attention is paid on the efforts to promote the transformation of the economic development pattern and industry structural adjustment of China. The old pattern highlighting foreign investment pooling into low-end manufacturing industries is no longer in agreement with China's efforts to change its economic growth pattern. According to a statement issued by the State Council, or the Cabinet, chaired by Premier Wen Jiabao, China now encourages overseas investors to invest in new energy, environmental protection, high-tech, modern service, advanced manufacturing sectors. Policy and funding support will be given to those overseas investments in under-developed western and central region for investing in those industries conforming to environmental protection standards.
Moreover, Foreign-funded companies should have more access to financing and would be encouraged to take part in the mergers, acquisitions and reshuffling of Chinese enterprises.
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Attachment: Outlook: China Ten Emerging Sector for Foreign Investment
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