Tuesday, December 21, 2010

The comments urged (Xinhua)--China's changing strategic foreign adaptation

Foreign enterprises in China, especially those in Europe, the enterprise, should stop China investment policy adjusted to complain, on the Chinese business environment reform of suspicion, in China's transition to economic development in the context of that re-examination and locate their own mode of investment management, seize the future development of the enormous space and strategic opportunities.

2010 is a foreign-invested enterprises in China new year of operation. For nearly 30 years using the "market for technology" and give "hyper-national treatment to foreign company" era officially come to an end. Foreign investment enterprises should shun flow and adapt to changes in the economic development in China, economic restructuring brought about a series of new changes.

China will begin next month for foreign-invested enterprises in China, foreign companies and foreign individuals charged urban maintenance and construction tax and education expenses surtax. This means that all Chinese and foreign enterprises in the territory of the consolidated taxation system, foreign investment have all enjoy national treatment in the "super" era officially ended, non-discriminatory market environment will allow foreign enterprises on the same platform on fair competition.

With 220 companies of u.s. 17, published the latest membership survey report, as published in prior reports, the tone is almost full. The report noted that nearly 90% of United States companies although recognition in China's profitability is equal to or higher than its overall profitability in the world, but they do not feel good, on the contrary, the situation is aware of China's investment and business environment is becoming increasingly unfriendly.

At the beginning of reform and opening up, China's foreign exchange and technology of the "double gap." Some developing countries experience is borrowing, the measures taken by China is attracting foreign direct investment. Because at that time, China's market economy is not perfect, foreign-funded enterprises investment difficult, will have some additional institutional cost, China for foreign investors offers tax relief as the representative of the "hyper-national treatment" policy.

With the deepening of reform and opening up to promote the accession to the WTO, China's market economy became more perfect, for foreign enterprises, institutional costs significantly lower foreign companies no longer enjoy the "hyper-national treatment" has become an inevitable development of history, it is fully in line with the relevant provisions of the WTO.

The study found that due to too many concessions to foreign companies operating costs than domestic enterprise cost a lot, even if the foreign company is trying to improve production efficiency, in mainland China can be better survival and development, which led to many inefficient foreign companies into China mainland, but this is not the situation of China's hope.

It should be noted that in China of foreign enterprises should correct understanding: whether it is more optimal fair market environment, or on foreign investment structure, skill levels for higher demands are changing the current China to accelerate the economic development of profound change.

The international financial crisis broke out, the Chinese traditional economic development means disadvantages revealed. The international financial crisis on the economic impact of China on the surface, is on the impact of the economic growth rate, essentially on the impact of economic development. Currently, China investment and consumption of imbalance, the disparity in income distribution between larger, technological innovation is not strong, industry structure, how to speed up the transformation of the economic development had to be delayed.

Before a period of time, since China's economic development is too dependent on exports and investment, causing the processing trade enterprises in the foreign-funded enterprises in occupies too large, the local government in the capital is also only look at the number of quality, and the resulting consequences is a "surplus in China, the pollution in China, profit in Europe". In addition, the huge trade surpluses also let China is faced with an increasing number of trade disputes and unprecedentedly strong appreciation pressure.

Statistics show that nearly half of China's trade is the processing trade, 2010 Q3 China general trade deficit 364.1 billion, and the processing trade surplus 2256.6 billion, with most of Europe and by including enterprises, foreign-funded enterprises.

In the industrial chain, get only the Chinese factory, and a few processing product design, transport storage and marketing of large profits include United States enterprises, foreign enterprises. For example, one in the US dollar price of about 1200 laptop, China processing enterprises only gets 35 dollars processing fees.

The Chinese Government has repeatedly stressed that the economic development of China's transformation methods's purpose is to promote economic development from too dependent on exports and investments to consumption, investment, exports, coordinated pull from over-reliance on resource consumption to increase material mainly rely on scientific and technological progress, improve the quality of labor, management, and to achieve economic development of long-term stable faster.

While fully exploiting the enormous potential of China's domestic demand, expanding domestic demand, especially consumer demand, is the transformation of the economic development of an important aspect of the way. Consumer demand for expansion after the "China market", will be the company's investment in the future management of one of the largest attraction, which they have always been dreaming of.

China April published on better utilization of foreign investment of opinion ", as the current and future period China foreign investment guidance documents. It stated that according to the economic development needs, amend the directory for the guidance of foreign investment industries, expanding open fields, encouraging foreign investment, high-end manufacturing, hi-tech, modern service industry, new energy and energy-saving environmental protection industries. Strictly limited "two gaoyizi" and low levels, excess production capacity expansion projects.

The CPC Central Committee on the development of national economic and social development, with 12 five-year planning recommendations are also proposed to increase the level of foreign investment. Utilization of foreign capital to optimize structures, rich forms, broaden channels, improving quality, and focus on improving the investment environment, ensure the protection of the legitimate interests of investors. Increase intelligence, talent and technology acquisition efforts to encourage foreign investment enterprises in China to set up research and development centers, drawing on international advanced management concepts, system, experience, and promote the institutional and technological innovation.

In this historical trend, foreign enterprise if you are unable to break the inertia of thinking, the traditional model, also on the

Figure put pressure on Chinese Government to continue to give its "hyper-national treatment", you mean put the latest technology or the latest technology research and development, just as the Chinese have cheap labor for processing production base, then its difficult to adapt to changes in the economic development of China's urgent requests.

The latest statistics, cumulative foreign investment established enterprise nearly 69 million, the actual use of foreign capital in excess of $ 1 trillion, China ranked 17 consecutive years of developing countries. For nearly 30 years, foreign investment have huge profits. In the current global demand significant changes in the structure, the Chinese market will be the main growth of world markets for expansion.

As China's transition to economic development, "the Chinese market" will speed up the formation, will become the future business growth of foreign-key support. In this situation, the foreign company should do not complain and jealousies, but effectively rely on its own in the development, production, operation and management of inputs and improvements to the Mainland as their research and development, manufacturing and consumer markets.

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