SCIO briefing on efforts to coordinate COVID-19 control with economic, social development

The State Council Information Office held a press conference on Monday morning in Beijing to introduce the efforts being made by various government departments to coordinate the prevention and control of the COVID-19 epidemic with continued economic and social development.

China.org.cn February 25, 2020

China News Service

What impact does the epidemic have on stabilizing foreign investment? What measures has the Ministry of Commerce taken? How to implement the work arranged by the central government to stabilize foreign investment in the next step? Thank you.

Ren Hongbin:

Since the epidemic outbreak, factors, such as constraints on labor and logistics, disruption to supplies of raw materials, have created some impact and difficulties to the production and operation of foreign-funded enterprises. At the same time, some foreign investors have adopted a wait-and-see attitude. It is expected that the epidemic will have a great impact on attracting foreign capital in the first quarter of this year, but the impact is periodic and controllable. In the long run, China's comprehensive competitive advantages in attracting foreign investment remain the same, and most multinational corporations have maintained their confidence and strategy in investing in China. China remains a top destination for investment of global enterprises.

For implementing arrangements in regard to stabilizing foreign investment by the CPC Central Committee and the State Council, the Ministry of Commerce (MOC) has taken timely action to introduce two policies to guide local commercial authorities to give precise support for stable operation of foreign-invested companies, do more to strengthen services for them and attract more investment, in order to minimize the influence of the epidemic. Currently, we have started to see some results, and major foreign-invested enterprises in Shanghai, Shandong and Hunan have resumed to a level of 80% of their production capacity. A total of 32 South Korea-invested auto parts enterprises in Shandong have been operated at full capacity since Feb. 15, a big step in stabilizing the global auto supply chain.  

On Feb. 23, General Secretary Xi Jinping delivered an important speech at a meeting to advance the work on coordinating prevention and control of COVID-19 and economic and social development and issued important instructions to stabilize foreign investment, which the MOC is conscientiously and strictly enforcing in the following six ways to minimize the influence of epidemic.

First, we will promote more foreign-invested enterprises to restore their production in an orderly way, among which, leading enterprises will be given priority so as to ensure a return to stable in global supply chains.  

Second, we will speed up the implementation of major foreign investment projects, keep a close eye on the major projects still under negotiation, and seek to remove difficulties and push ahead with their implementation. 

Third, we will continually open up sectors like telecommunication, medicine, education, culture and finance wider to foreign investment, and shorten the negative list for foreign investment in the country including free trade zones. 

Fourth, we will keep promoting opening-up platforms and give guidance to free trade zones in speeding up pilot reform and opening-up innovative programs, and ensure national economic development zones can better play their role as dynamic forces in stabilizing foreign trade and investment.

Fifth, more efforts will be made to protect the lawful rights of foreign companies, and a sound service system for foreign investment will be established.

Sixth, we will continue to improve the environment for foreign investors. We will make sure that the Foreign Investment Law and its implementation regulations are well implemented, so as to boost foreign investors' confidence of long-term investment and business operation in China. Thank you.

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