According to Riyadh Daily, figures released by China's official statistical agencies show that Saudi Arabia's current investment in projects in China amounts to US$ 5.85 billion, ranking higher among countries investing in China.
According to the data obtained by Riyadh Daily from the Economic and Commercial Foreign Affairs Department of China National Bureau of Statistics, as of June 5438+00, 2007, there were 59 Saudi direct investment enterprises in China, with a total investment of US$ 5.85 billion and a registered capital of US$ 2.08 billion. Statistics show that Saudi direct investment in China has the following characteristics: first, Saudi direct investment in China has never violated the laws of China; Second, Saudi Arabia's investment in China has continued to grow substantially since 2004, and the number of enterprises investing in Saudi Arabia has averaged 20? The speed has increased. At present, Saudi Arabia ranks 65th among 200 countries that directly invest in China. Third, Saudi Arabia's investment enterprises in China are well funded, with an average of 9.285 million US dollars per enterprise; Fourth, the main areas of Saudi investment in China are oil, natural gas and some raw materials for production and processing. Saudi Arabia's investment in China has developed well. Last March, several Saudi-funded enterprises were established in Fujian, Jiangsu and other places, which greatly increased Saudi investment in China. As of September last year, Saudi Arabia's investment and registration in China was 24 times that of the same period last year.
The World Bank recently released the report "Research on the Prospects and Strategies of Foreign Investment Utilization in China", which pointed out that during the period from 2006 to 20 10, China is expected to account for about 30% of the estimated $250 billion of foreign direct investment (FDI) flowing into developing countries.
Due to China's good investment environment, low wages and the rapid growth of the domestic market in recent years, China attracted 25% of the total foreign direct investment received by developing countries in the past decade. In 2004, the figure reached a record $60.6 billion, accounting for 9.9% of the global foreign direct investment. However, it includes the situation of "circuitous" investment of domestic funds. It is estimated that 20%-30% of foreign direct investment is not real foreign direct investment, but domestic investment is diverted abroad and reinvested in China. This is to enjoy the preferential tax or investment policies that foreign investors can enjoy.
China is facing increasingly fierce FDI competition. Many countries, whether in Asia, Eastern Europe or Latin America, are adjusting their policies to attract more foreign investment.
According to the report, China still faces many policy challenges in how to make the best use of foreign direct investment. China should maintain an attractive investment environment; Establish a fair tax system; Further open the service industry to foreign direct investment and encourage competition; Maximize technology transfer and guide more foreign direct investment to invest in high-tech industries; Improve the investment environment and the relationship with investors in inland areas.
Measures to improve the investment environment include simplifying the complicated investment approval procedures, and improving the government's work efficiency by reducing the overlapping functions, repeated registration and cumbersome approval of government departments; Improve the direct financing ability of foreign-invested enterprises through financial system reform; Reform the judicial system.
"Reducing tax incentives for foreign investors will not greatly reduce foreign direct investment. Although the circuitous investment of domestic funds will disappear and the statistics of foreign direct investment will decrease, the actual foreign direct investment will not decrease. " The report believes that merging the two existing tax laws is the best way to unify the income tax rates of domestic and foreign-funded enterprises. The combination of the two taxes can eliminate some tax distortions under the current system, including tax deduction restrictions on R&D investment, wages, marketing and depreciation.
"The liberalization of capital flows under indirect investment should be the medium-term goal. Under the current circumstances, priority should not be given to further large-scale liberalization of capital flows under other investments (non-securities and indirect investments). " The report is cautious about China's opening to the outside world.
The report pointed out that the liberalization of bank deposits, loans and other financial transactions in many countries is accompanied by the increase of capital flow fluctuations, especially when there is speculation and crisis in pegged exchange rates. China's current supervision is not completely effective and cannot eliminate the volatility of capital flows. At present, it is more important to ensure that the macroeconomic management and risk management of domestic enterprises, especially banks and other financial institutions, are efficient. The liberalization of capital outflow is unlikely to have a great impact on the accumulation of foreign exchange reserves in the short term. On the issue of absorbing liquidity, we can consider other policies, such as allowing some institutions with high credit ratings, such as the International Finance Corporation and the Asian Development Bank, to issue bonds in the domestic market.
Judgment: There will be three changes in foreign direct investment in the future.
In the eyes of many observers, government investment and foreign direct investment are the two major driving forces of China's economic rise. A few days ago, the World Bank released the report "Research on the Prospects and Strategies of Utilizing Foreign Capital in China", which described the current situation of attracting foreign direct investment in China, and pointed out that foreign direct investment will shift to industries facing the domestic market, inland areas and high-tech industries in the future.
According to statistics, in the past decade, China's foreign direct investment accounted for 6.5% of all foreign direct investment in the world and 25% of foreign direct investment in developing countries. In 2002, it broke through the $50 billion mark for the first time and became the country that absorbed the most FDI in the world. In 2004, China's foreign direct investment reached a record $60.6 billion, accounting for 9.9% of the global foreign direct investment. According to the world bank experts' prediction, from 2006 to 20 10, China is expected to account for about 30% of the estimated $250 billion of foreign direct investment flowing into developing countries.
According to the report, the distribution of foreign direct investment in different provinces of China is uneven. Among them, coastal provinces received 90% foreign direct investment. Although the policy encourages investment in the west, the trend of foreign capital "westward" is not obvious. In 2004, foreign direct investment in western provinces was less than 2% of the total.
Uneven industrial distribution is also a weakness of foreign direct investment structure. Foreign direct investment is also more concentrated in industry. In the 1990s, 60% of foreign direct investment was concentrated in the industrial sector. In 2004, 75% of foreign investment was concentrated in industry, of which 765,438+0% was concentrated in manufacturing. Foreign direct investment attracted by service industry accounts for 20%, most of which is concentrated in real estate development. Banks and public facilities are often important industries for foreign direct investment in other countries, while China attracts very limited investment. Foreign direct investment in agriculture is almost negligible.
Although the growth of foreign direct investment in China has maintained a "rapid pace", the report also points out that the proportion of foreign direct investment in GDP and total investment is small, and in the past five years, the average proportion of foreign direct investment in total investment is only 5%, which is smaller than that of Hungary, Czech Republic, Vietnam and Singapore. Judging from the proportion of GDP, China can't be regarded as a recipient of foreign direct investment. Moreover, it is estimated that 20%-30% of foreign direct investment is not real FDI, but domestic investment bypasses foreign countries and reinvests in China. This is to enjoy the preferential tax or investment policies that foreign investors can enjoy.
Some experts also expressed concern about China's high dependence on foreign direct investment and low added value of products. But it is gratifying that China is trying to get rid of the brand of "world factory" and transform into an innovation center. In terms of R&D environment, design concept, venture capital mode, marketing strategy, etc., it has begun to connect with the international community, but it also presents its own characteristics.
According to the current trend, China will attract enough foreign direct investment in the new 11th Five-Year Plan period. This will bring a relatively relaxed external environment for China to adjust its policies and encourage foreign direct investment to serve the strategic objectives of national development. China's national strategic goal itself is constantly changing. Zhao Min, an economist of the World Bank and the main author of the report, pointed out that in the next five years, China will pay more attention to balanced development. "Five overall plans" means paying more attention to domestic development, balanced regional development and reducing resource consumption. As far as foreign direct investment is concerned, the "five overall plans" require that investment should be transferred to the domestic market, inland areas and high-tech industries.
According to the report, China's accession to the WTO means that many industries that were previously closed or restricted to foreign direct investment will be opened to foreign investment in the next five years. The elimination of these obstacles means that more investment will enter banking, insurance, telecommunications, logistics and transportation services. At the same time, China's efforts in strengthening intellectual property protection can attract more high value-added industries. Secondly, China's huge investment in higher education in the past few years will be rewarded in the future. Because an important factor that foreign investors consider when choosing the investment location is the local education level.
20%
In 2004, 75% of foreign investment was concentrated in industry, of which 765,438+0% was concentrated in manufacturing. Foreign direct investment attracted by service industry accounts for 20%, most of which is concentrated in real estate development.
Suggestion: accelerate the pace of foreign capital "westward"
After China's entry into WTO, foreign direct investment (FDI) poured into China at a faster speed and in more diversified forms. However, the distribution of foreign direct investment in China is extremely uneven in the eastern, central and western parts of China. According to statistics, coastal provinces have received 90% foreign direct investment. Although the policy encourages investment in the west, the trend of foreign capital "westward" is not obvious. The share of foreign direct investment in the west did not increase, but decreased from 5.22% in the 1990s to 3.25% in 2003 and 2.88% in 2004.
Opportunities and challenges coexist. A few days ago, the World Bank released the report "Research on the Prospects and Strategies of Utilizing Foreign Capital in China", which pointed out that the rising land and labor costs in the eastern provinces of China brought opportunities to the central and western provinces. At the same time, low cost does not guarantee that the industry will gradually transfer to the central and western regions, and both inland provinces and the central government can make a difference in attracting foreign investment into the west.
"Foreign investors may also choose other Asian countries to invest, and the products they produce will be sold to the international market or the China market, and the China market will continue to open after China's accession to the WTO. Similarly, investors can cope with the rising cost of enterprises in the eastern region by improving the technical content and cost-output efficiency, rather than simply relocating. " Zhao Min, an economist of the World Bank and the main author of the report, pointed out that the productivity increase brought by the industrial agglomeration effect in the east far exceeds the cost increase, which makes enterprises reluctant to relocate.
According to the report, if inland provinces want to improve their competitiveness in attracting foreign direct investment, they need to intensify their efforts to improve the investment environment and concentrate on attracting industries that are in line with their comparative advantages, instead of blindly imitating the development of export manufacturing in the east and seeking to establish "enclaves" in cooperation with coastal areas. Inland provinces provide land and labor, while coastal provinces provide industry and experience. The World Bank survey shows that there is a big gap between inland cities and coastal cities in terms of investment environment, especially in terms of intellectual property protection and improving government efficiency.
The government can also do a lot in this regard. The report pointed out that the central government should create a level playing field and cancel preferential policies that only benefit the eastern region, such as special economic zones or preferential tax policies. The government can re-examine the industrial restrictions on foreign direct investment, and inland areas may have specific advantages in these industries, including natural resources and public utilities services such as water, electricity and gas. In addition, the government should increase efforts to abolish regional policies and practices that hinder the integration of the domestic market and improve the efficiency of the transportation industry.
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After the 1960s, international direct investment developed rapidly, and the capital stock and flow expanded sharply, becoming the leading force in the world economy. In the last 10 year of the 20th century, foreign direct investment (FDI) and its carrier transnational corporations (MNCs) became the "engines" to promote the world economic development, especially the economic development of developing countries. 199 1- 1995, the average annual growth rate of global FDI was 20%, 1996-2000 was 40. 1%.
1978 since the reform and opening up in China, FDI has grown rapidly. 1985 China's actual utilization of foreign direct investment165.8 billion USD, exceeding 1992 100 billion USD and 1996/40 billion USD. After that, although it fluctuated, it remained above $40 billion. After China's entry into WTO, China's utilization of foreign capital has continued to grow. In 2002, it broke through the $50 billion mark for the first time and became the country that absorbed the most FDI in the world. In 2004, China actually attracted about US$ 60.63 billion in foreign direct investment, accounting for 9.9% of the total foreign direct investment in the world. (Yuan Yuan)
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