Premier Li Qiang proposed in the 2024 ** work reportRestrictions on foreign investment in the manufacturing sector will be lifted in an all-round way, expand the catalogue of industries that encourage foreign investment, and encourage foreign-funded enterprises to reinvest in China. What does this mean?
The complete abolition of restrictions on foreign investment in the manufacturing sector is not a new proposal. In October last year, this blockbuster news was officially announced at the opening ceremony of the third "Belt and Road" Forum for International Cooperation. This time it was written into the first work report, which is a concrete implementation, and it is also a re-declaration and re-deployment, which further demonstrates China's determination to promote high-level opening up and shows the firm attitude that China's door to opening up will be opened wider and wider.
China has obvious advantages in the field of manufacturing, mainly in the following aspects:
Scale advantage: China has a huge manufacturing scale and is the world's largest manufacturing country. This scale advantage allows China to undertake a large number of production orders to meet the needs of domestic and foreign markets.
Integrity of the industrial chain: China's manufacturing industry chain is very complete, covering all aspects from raw materials, parts manufacturing to final product production. This complete industrial chain enables China to organize production efficiently, reduce costs, and improve product quality.
Labor advantage: China has abundant and relatively cheap labor resources, which gives China's manufacturing industry a competitive advantage in terms of labor costs. At the same time, as the skill level increases, the capacity of the Chinese workforce in technology and innovation is also increasing.
Technological innovation capabilities: In recent years, China's technological innovation capabilities in the manufacturing sector have been continuously improved. Many enterprises have increased their investment in R&D, which has promoted the technological progress and industrial upgrading of the manufacturing industry. Especially in some high-tech fields, such as 5G, artificial intelligence, new energy, etc., China has made remarkable progress.
Market advantage: China has a huge domestic demand market, which provides a broad space for the development of the manufacturing industry. At the same time, China's manufacturing industry also actively participates in international market competition, and its products are exported to all parts of the world, which further enhances the international influence of China's manufacturing industry.
The removal of foreign investment access restrictions in the manufacturing sector will bring a series of significant benefits, not only for the Chinese economy, but also for global investors and the global industrial chain
First, the removal of restrictions on foreign investment access will further enhance the openness and transparency of the Chinese market and attract more international capital inflows. This will help make up for the lack of capital, technology and management experience in the domestic manufacturing industry, and promote industrial upgrading and innovative development. At the same time, the participation of foreign capital will also enhance the competitiveness of China's manufacturing industry in the global industrial chain and promote international cooperation. Secondly, the entry of foreign capital will bring advanced technology and management experience to promote the technological progress and efficiency improvement of China's manufacturing industry. Foreign investors often have more advanced technology and more mature management experience, and their participation will help improve the overall level of China's manufacturing industry and promote the development of the industry to high-end. In addition, the removal of restrictions on foreign investment access will also promote competition and vitality in the domestic market. The entry of foreign-funded enterprises will increase market participants, promote the intensification of market competition, and stimulate enterprise innovation and market vitality. This will help improve the efficiency and product quality of China's manufacturing industry to meet the growing demand of consumers. Finally, the removal of restrictions on foreign investment access will also provide more business opportunities and development space for foreign-funded enterprises. Foreign-funded enterprises can better integrate into the Chinese market, carry out wider cooperation and exchanges with Chinese enterprises, and jointly promote the development of the manufacturing industry. This will help strengthen economic ties between China and foreign countries and promote the prosperity and stability of the global economy. So, what exactly does "total cancellation" mean?
The first is "investment gravity". Looking at the world, the reshoring of manufacturing has been noisy for a long time, and the wait-and-see sentiment of transnational direct investment is strong. China's "comprehensive cancellation" will not only help boost confidence, improve expectations, and enhance the willingness of high-quality foreign enterprises to invest, but also help enhance the linkage effect of domestic and international markets and resources.
The second is the "catfish effect". The door is open, what will come in? Capital, products, talents, technology, management experience ......Another important point is competition. There are more "catfish", which will enhance the vitality of the industry and add impetus to the transformation and upgrading of the manufacturing industry. The third is win-win cooperation. At present, the world economic recovery is sluggish, and the trend of "anti-globalization" is still rising. China has fully lifted the restrictions on foreign investment in the manufacturing industry, and continues to inject warmth and goodwill into the world economy. If the world is good, China will be good; If China is good, the world will be better.
Hotspot Engine Program