BEIJING -- East China's Zhejiang Province has recorded a new high in use of overseas investment for the sixth year in 2015 despite global economic downturn. The province has become an active driver and direct beneficiary of international investment cooperation by firmly seizing the opportunity of economic globalization and taking a part in international division of labor.
Under the "new normal" of economic development, a bunch of new opportunities for foreign investment has emerged in Zhejiang.
Sixth consecutive year high in using overseas capital
In 2015, Zhejiang Province approved 1,778 overseas-funded enterprises with total investment of 41.14 billion US dollars. The contracted foreign investment hiked 14percent on year to 27.82 billion US dollars, and actually-used foreign investment increased 7.4 percent on year to 16.96 billion US dollars, marking a new high for the sixth consecutive year.
By the end of 2015, the province had cumulatively approved 55,905 overseas-funded enterprises with total investment of 514.75 billion U.S. dollars. Contracted overseas investment amounted to 290.66 billion U.S. dollars and the total amount of overseas capital actually used reached 158.65 billion U.S. dollars.
Meanwhile, investment by the world top 500 in Zhejiang has witnessed multiplicative increase both in quantity and scale. In recent years, overseas investment is leaning forward to high-technology industries, and many of world top 500 companies have moved their R&D centers and regional headquarters to Zhejiang.
New opportunities for foreign investment emerge
The new opportunities emerged under the "new normal" of China's economic development have injected renewed vigor into the interaction with the rest of the world.
Firstly, big opportunities are implicit in the capital market. Zhejiang has entered a "new normal" of selecting overseas capital. To fulfill its target of using 500 billion U.S. dollars of overseas investment in five years, Zhejiang would have to attract big investors and "chain type investors" at the best to push forward its economic development to medium and high-end. To invite world top 500 is a prioritized choice for Zhejiang considering their extensive industrial tentacles and investment scale and quality.
Secondly, quick upgrading of demand structure spurs new commercial opportunities. The increasing per capita income and upgrading consumption structure has put up more demand on consumption of superior products in information, medical care, health, finance, and culture.
Such structural opportunities manifest themselves not only in consumption but also in industrial sectors. Zhejiang has listed seven emerging industries for prioritized development, including information, environmental protection, health, tourism, fashion, finance and high-end equipment. Doors are widely open for the world top 500 in these industries
Thirdly, green development breeds new green economic opportunities. The green development of Zhejiang, such as controlling water and air pollution and wastes, requires a huge amount of environmental protection equipment, technologies and services. Enterprises demand for large-scaled, newer and highly efficient production equipment. The province has already on the move to "replace people with machines".
Zhejiang's strength in attracting overseas investment
First of all, Zhejiang is situated in Yangtze River Delta area where economy is highly developed with mature manufacturing industry, flourishing service industry and robust consumption demand.
Statistics show that Hangzhou is one of the cities with the highest investment return rate for both domestic and overseas investors. The province promises vitality, potential and fine development environment.
Secondly, Zhejiang is noted for its private businesses. Zhejiang businessmen active on the economic arena have great insight and far sight, wisdom and courage in doing things, which are very attractive to overseas investors. After the first stage of cooperation with overseas investors, they are anxious to upgrade their technologies and modern management skills, which would provide great opportunities for foreign investors.
Thirdly, Zhejiang is dedicating in creating a more convenient and fair market environment for foreign investment, and providing beautiful economical, comfortable living and innovation-friendly conditions.
Fourthly, there is a big personnel pool. A personnel advantage is building up in Zhejiang to replace the fading advantage of low labor cost. Famous colleges and schools represented by Zhejiang University have become the cradle of high-quality, comprehensive and professional personnel. The province also has rich resources of business people, who have the courage and wisdom to blaze a new trail, who are ideal partners for the world top 500.
Foreign investment policies
Zhejiang Province has set specific goals for increasing foreign capital use during 2013-2017. The province aims to realize 100 billion yuan of actually used foreign capital annually on average and altogether 500 billion yuan in the five years, with an annual average growth of 8 percent.
The province aims to have a more balanced structure among the three main industries, with the services industry accounting for at least 60 percent of the total foreign investment in the province by 2017.
In the five years by 2017, Zhejiang aims to bring in "Fortune Top 500" firms to invest in at least 100 companies in the province, and have more than 100 projects each with foreign investment of more than 100 million US dollars, and have 10 projects each with foreign investment of 500 million US dollars.
The province aims to have 20 percent of the foreign money invested in Zhejiang come from developed economies such as Europe and the United States by 2017.
The province also aims to increase foreign investment in the central and southwestern regions to 10 percent of the total by 2017.
Under the goals, economic development zones will utilize more than 60 percent of the foreign money invested in Zhejiang.
Supported industries
Zhejiang Province encourages foreign businesses to invest in areas including modern agriculture, high and new technology, advanced manufacturing, energy conservation and environmental protection, new energy and modern services industry.
The province intends to attract high-end foreign investors with advanced technologies and encourages global multinationals to locate regional headquarters in Zhejiang.
Zhejiang encourages foreign money to be invested in the new district of Zhoushan Islands in such areas as shipbuilding, ocean engineering, shipping service and port facilities. It also encourages foreign companies to set up purchasing centers in Yiwu, and encourages foreign financial institutions to set up branches and offices in Wenzhou.
A single purchase
