On February 20, the State Council Information Office held a regular briefing on the State Council’s policies.
At the press conference, a reporter asked a question, and the latest survey by the China-US Chamber of Commerce showed that the most members are considering or transferring part of China's production capacity to other countries since the record. Meanwhile, PVH and Illumina are on the list of unreliable entities in China. What policies will China introduce to better attract foreign capital and increase foreign capital's understanding and predictability of China's unreliable list?
Zhu Bing, Director of the Foreign Investment Management Department of the Ministry of Commerce, responded that based on some of the situations we have learned, some multinational companies are indeed adjusting their investment scale and business in China, and there are several main types: First, labor-intensive enterprises have some gradient transfers. With the rise of domestic labor, including land costs, some cost-sensitive and labor-intensive enterprises have adjusted their layout and transferred production capacity globally based on development strategies and comparative advantages at home and abroad. The second is investment transformation and upgrading. Many foreign-invested enterprises have adapted to the domestic industrial upgrading trend and actively adjusted their investment layout in China. For example, some companies have closed some production lines, such as mobile phones, home appliances, and computer production lines, but at the same time, they have added production lines for some high-tech products such as new displays and new energy batteries, and have expanded investment in R&D centers in China, so this is an upgrade of the industry. The third is to diversify investment. We have learned that some companies have been affected by geopolitical factors and have begun to spread some new investments to other countries.
Overall, foreign capital has both inflows and outflows, increases and decreases. When you mentioned the data of the American Chamber of Commerce in China, Vice Minister Lingji also said just now that some companies are decreasing and some companies are increasing. Overall, what foreign-funded enterprises have reflected to us is that the huge business opportunities and scientific and technological vitality in the Chinese market have always been the priority options for multinational companies. At present, the long-term positive support conditions and basic trends of China's economy have not changed. With the implementation of the newly introduced foreign investment policies, the "magnetic suction" of the Chinese market to foreign investment will be stronger.
