Data released by Department of Commerce of Zhejiang Province shows that the province actually used 13.52 billion U.S. dollars of foreign investment in the first three quarters of 2017, increasing by 10.2 percent year on year (91.91 billion-yuan equivalent, rising by 13.7 percent). The total foreign investment from 2013 to the end of September 2017 reached 500.35 billion yuan, fulfilling the target of 500 billion in five years ahead of time, which was set by the province at the beginning of 2013.
"Over the past five years, Zhejiang has been remarkably successful in deepening the reform of foreign investment system, promoting foreign investment, strengthening the building of a platform for attracting foreign investment, cultivating new advantages for attracting foreign capital, attracting big and strong foreign enterprises and optimizing services,” said a leader of the commerce department.
In the recent five years, Zhejiang has increasingly utilized more foreign investment. Since the beginning of 2013, the amount of foreign investment actually used has increased steadily. By the end of September 2017, the amount of foreign investment had accumulated to 78 billion U.S. dollars, with an average annual growth of over 7.7 percent and its national ranking was advanced from the 6th in 2012 to the 4th in 2016.
The structure of foreign investment industry has been optimized constantly. From 2013 to 2016, the amount of foreign investment used in service industry increased at annual rate of 12.3 percent, accounting for 58.6 percent of the total in 2016 and 63.7 percent in the first three quarters of 2017. The annual increase of foreign capital used in the high and new technology industries reached 19.6 percent, with its proportion rising from 14.1 percent in 2012 to 30 percent in 2017.
The positive roles of foreign investment have been enhanced steadily. In 2016, the foreign enterprises above the designated scale, which accounted for 1/7 of the total, contributed about a quarter of the total industrial output value, total tax revenue and the number of workers employed and 1/3 of the value of exports delivered. The output value of new products, R&D input and the number of patent applications has all been higher than other types of enterprises.
Zhejiang has adopted a series of policies 2017 in order to attract more foreign capital. The document Implementation Opinions on Further Opening up and Actively Using Foreign Capital offers supporting policies in a number of areas such as key areas to utilize foreign investment, introducing competent personnel and innovations. The document Action Plan of Attracting Big and Strong Foreign Enterprises eyes on a number of the world’s top 500, offers a number of major projects, arranges a number of overseas merchant groups, builds a number of key counties and development districts and organizes a number of domestic investment activities.
In 2017, the province for the first time listed the foreign investment attraction targets into the economic responsibility assessment system for all cities. The provincial authorities signed letters of foreign investment attraction responsibility with all cities at the provincial commercial work conference. The province has deepened reform and raised the level of foreign investment relaxation, management and services and delegated the work of putting on the record the establishment of overseas-funded enterprises and the alteration of registration items to counties (cities, districts). It has carried out the “one stop” services. By sorting out local rules and regulations, it has produced the list of work to be done, clarified the list of materials required, fixed the work flow chart, and formulated a guide to “one-stop” administrative permit service.
The province coordinates resources, innovates ways of attracting investment and focuses on big platforms for realizing precision investment promotion. The province held the 19th investment fair and took the lead in holding ceremonies for signing major projects, held thematic forums and exchanges for Chinese and overseas enterprises on cooperative development in China’s market, a global exhibition and the Zhejiang forum, Zhejiang medical equipment international cooperation and exchange meetings and media interviews and carried out industry-specific investment promotions.
The province has persisted in carrying out foreign enterprise service activities. Together with provincial departments, the province carried out such activities as “lectures on foreign investment policies” and “visiting overseas Chinese enterprises and offering services”. It has delivered services and policies to the enterprises and help them overcome their difficulties under the new normal of economic development. It advocated for foreign-funded enterprises taking their social responsibilities and introduced the third-party consulting organizations to carry out evaluation of foreign-funded enterprises designated to demonstrate the performance of social responsibilities. It has designated annually enterprises for demonstrating the performance of social responsibilities and made their names public and spread.
The enterprises have felt strongly the weight of the measures and moves adopted by Zhejiang province to support foreign-funded enterprises in policy and services.
Wang Deli, general manager of the Jiashan Huarui Sun King Power Electronics Group Ltd., said that the company has chosen Jiashan of Zhejiang because of the solid economic foundation, mature market and the geographical advantage with Shanghai as its backing. Furthermore, the people here are humanistic and the government is ready to support and serve enterprises. The service offered by the development zone in 2013 when the factory was built was well rendered, helping saving the time by nearly half. In 2016, the enterprise enjoyed about 5 million yuan of tax concession. The geographical advantage and attractiveness have made it easier for enterprises to attract competent personnel.
The Akzo Nobel, one of the world’s top 500, is the largest paint producer in the world. Sun Zhaoguo, general manager of Akzo Nobel (Jiaxing) said: “The ‘one stop’ service put forward by Zhejiang is not merely a slogan. Over the past year, we can contact the local development zone leadership and work departments by phone at any time and the connection is very smooth. The development zone has given a substantial tax preference. When I was in Shanghai, I admired my colleagues in Zhejiang, where the annual tax refund may be used directly for the benefit of employees. “
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