Mainland China’s Utilization of Foreign Investment versus New Foreign Investment Law
|關鍵字:||中國大陸;外資利用;外國投資法;外資利用政策;Mainland China;Utilization of Foreign Investment;Foreign Investment Law;Foreign Investment Utilization Policy|
Mainland China’s exploitation of large-scale foreign investment began in 1978. Since then foreign investment has spread out continuously and mainland China has become world's largest region with most extensive employment of foreign investment. By development stages, China’s employment of foreign investment can be divided into five stages - the gestation period, the initial development phase, the rapid developing period, the stage of twists and turns, and current maturity state. Several structural changes occurred during the progression of foreign investment utilization in mainland China: 1. Industrial type is migrated from the primary industry to the secondary industry, i.e. manufacturing industry; 2. geographically the developing areas have been moved from the coast to inland Midwest districts; 3. manufacturing stature upgrade becomes the priority, instead of manufacturing capacity expansion. During the transition, refinement of policies and regulations have played the main role. During the gestation period of utilizing foreign investment, mainland China tried to attract foreign investment by using tax incentives, relief of so-called approval limits, and the establishment of a foreign investment policy. Then, in the initial development phase, mainland China had tried to reduce administrative interference, establish so-called Positive Listing, and promptly update regulations, in the hopes of consolidating the foreign investment setting in China, then enhancing the confidence from foreign investors. During the rapid developing period, China expanded open areas for trading, added more freedom of foreign investment entry, and also promoted the national treatment principle for attracting more foreign investments. At the stage of Twists and Turns, mainland China exerted the opportunity to join the WTO to further expand the opening scale for foreign investments. At the same time, mainland China also began fine tuning the direction of foreign investment through the regulations such as Catalogue Guidance for Foreign Industrial Investment. Recently China began reforming foreign investment ordinances through legal system in trying to modernize foreign investment regulations. For example, the publication of new foreign investment laws. Moreover, Mainland China has also started new stimuli such as Free Trade Zone to further expand the degree of openness during this maturity period. The inherent logic we have learnt from mainland China’s changes on policy and regulatory for the employment of foreign investment is as follows: 1: developing areas are expanded from the points to the regions and from the coast to inland; 2. the source of foreign capital has been changed from the international lending to foreign direct investment; 3. cooperate ownership has mainly changed from partnership to sole proprietorship; 4. strategy to use foreign investment has been changed from bridging the developing gap to gearing up for the future. Along the road of "Preferential Trading Area – GSP (Generalized System of Preferences) - Industry Leading Preference - National Treatment to Foreign Investment", mainland China has appreciated the smooth development for thirty years. Mainland China’s enactment of the new law on foreign investment is the revolution to the utilization of foreign investment in trying to cope with future development. New law has reorganized foreign investment regulations comprehensively and systematically. It has implemented the principle of national treatment for foreign investment thoroughly. Its intention is to monitor foreign investment by a new perspective, and then further strengthen the review based on national security level. From a historical perspective, new mainland China’s law on foreign investment is the best revision in the history in term of technical standards and monitoring intelligence. Supporting with the future introduction of new Positive Listing and other foreign investment attracting policies, plus encouraging major policies such as Free Trade Zone, we can reasonably guess mainland China’s inflow of foreign investment will increased rationally, both in quality and quantity. To sum up, coping with further opening in mainland China, Taiwan’s position to this change should bring the public attention and dissection. Keywords: Mainland China, Utilization of Foreign Investment, Foreign Investment Law, Foreign Investment Utilization Policy.
|Appears in Collections:||Thesis|