City boosts foreign investment utilization

Shanghai has unveiled measures on Friday to improve the utilization of foreign investment. 

It has designated city-level industry authorities or management bureaus to oversee each sector mentioned in an action plan. 

"All relevant departments and units should fully understand the importance of further improving the utilization of foreign capital under current circumstances, and should take active initiative to work on relevant measures to make sure they are fully implemented," it said. 

By the end of March this year, Shanghai had fetched in US$264.2 billion paid-in foreign investment. 

The city is already home to 730 regional headquarters of multinational corporations and 466 research and development centers, making it a city with the largest number of regional headquarters of multinational corporations and foreign R&D centers among domestic cities. 

Foreign-invested enterprises play an essential part in Shanghai's economic and social development, with nearly 60,000 of them contributing more than one-quarter of the city's GDP, more than one-third of tax revenue. They account for about two-thirds of total import and output value, one-fifth of employment, and about half of R&D spending by industrial enterprises.  

Last October, the State Council released opinions on further improving the utilization of foreign investment, with the aim of promoting high-quality development and unlocking market vitality.

The opinions covered four areas — expanding opening-up, further promoting investment, deepening reform to facilitate investment, and protecting the interests of foreign investors. 

Shanghai's 24 detailed measures build upon that foundation and offer specific guidance and encouragement to shore up foreign investment sentiment and build a more favorable investment environment. 

The city will accelerate the process to draft relevant local regulations to create a fair business environment after the Foreign Investment Law was enacted in January this year.

District-level and industry authorities will seek opinions from foreign-invested companies and relevant commerce and industry associations before officially issuing any key policies and regulations.  

Shanghai will also offer financial support for investment promotion events, and will encourage district-level governments to offer aid for such activities. Additional incentives will be offered to those that have successfully introduced foreign investment projects which contribute toward the local economy. 

The city will implement the latest version of the negative list for foreign investors and will speed up the opening-up of sectors such as the financial and new-energy vehicle industries. 

Training sessions will also be held and investment guidelines will be drawn up in each district to offer convenience for existing and potential investors. 

Shanghai will improve communication between the government and foreign-invested companies by holding regular round table talks and other events to help enterprises address challenges and difficulties.