Foreign direct investment (FDI) in China faces “unprecedented difficulties” after falling for eight months, the longest stretch of declines this decade, Chinese Vice Commerce Minister Chen Jian (陳健) said.
The government will announce policies to stabilize investment “soon,” Chen said at a briefing in Beijing yesterday.
Multinationals have reduced spending as they grapple with the global crisis, adding to drags on growth in the world’s third-biggest economy after exports collapsed.
Direct investment in China slid 17.8 percent to US$6.38 billion in May from a year earlier. The latest data also showed that China received US$34.05 billion in foreign investment in the first five months of the year, down 20.4 percent from the same period a year ago.
Chen said the planned policies to stabilize foreign investment would focus on projects that would help create jobs, save energy and protect the environment.
“We will continue to work on the creation of a stable and transparent policy environment, level and open market conditions, and regulated and efficient administrative services for foreign investment,” he said.
Chen said Beijing may allow foreign firms with investments in China to list domestically, as part of efforts to boost trader confidence during the global downturn.
“We will continue to actively work with relevant authorities to study and complete the policy of allowing foreign-invested companies to list in the country,” he said. “We will guide high-quality foreign-invested companies to carry out domestic listings at appropriate times,” he said.
However, Chen said there would be no change to an order announced last month stating domestic firms should be prioritized in bids for projects that are part of a US$585 billion stimulus package unveiled last year.
“The problem now is not that we are protecting [Chinese companies], but that there are signs that domestic products are discriminated against. We just want an impartial environment,” he said.
Foreign-invested businesses account for 30 percent of industrial output, 55 percent of trade and 11 percent of urban jobs, the commerce ministry said.
Foreign direct investment in China totaled US$876 billion at the end of last year, while China invested US$170 billion overseas, a report by the Peterson Institute for International Economics said.
Last year, the nation attracted a record US$92.4 billion, excluding the financial sector.
China’s direct investment abroad also fell in the first half of this year, the official said, adding that the government would use fiscal, financial, foreign-exchange and insurance polices to encourage larger outbound flows.
Swedish Member of Parliament Hampus Hagman is pushing for changing the name of the nation’s trade office in Taipei to signal improved relations with “Asia’s perhaps foremost democracy.” Hagman on Wednesday last week proposed renaming the Swedish Trade and Invest Council to “Sweden’s Office in Taipei,” following similar changes by other nations. The Swedish Trade and Invest Council, part of Business Sweden, is owned by the Swedish government and Swedish industry. Taiwan and Sweden share important values such as respect for democracy, human rights, the rule of law and freedom of speech, Hagman said in the motion, adding that the two nations
TWO CASES: The five allegedly conspired with conglomerates, threatening the nation’s governance and subverting the rules of ethical conduct, a deputy chief prosecutor said Taipei prosecutors yesterday charged three legislators and one former lawmaker with contravening the Anti-Corruption Act (貪污治罪條例) in a case linked to former Pacific Distribution Investment Co (太平洋流通) chairman Lee Heng-lung’s (李恆隆) battle with the Far Eastern Group (遠東集團) over ownership of the Pacific SOGO Department Store (太平洋崇光百貨) chain, while independent Legislator Chao Cheng-yu (趙正宇) was indicted in a separate case involving two funeral services companies and a plot of land in a national park. Chinese Nationalist Party (KMT) legislators Chen Chao-ming (陳超明) and Sufin Siluko (廖國棟), Democratic Progressive Party (DPP) Legislator Su Chen-ching (蘇震清) and former New Power Party legislator
PENGHU INSPECTION: Taiwan cannot let its enemies strut around in its airspace, Tsai said, one day after a Chinese spokesman denied a median line exists in the Taiwan Strait Following China’s assertion on Monday that there is no “median line” in the Taiwan Strait, President Tsai Ing-wen (蔡英文) yesterday pledged to defend the nation’s airspace during a visit to an air force base in Penghu, saying that Taiwan cannot allow others to flex their military muscle in its territorial airspace. Tsai praised the “heroic performance” of the pilots of the Indigenous Defense Fighters who have been intercepting Chinese People’s Liberation Army Air Force planes in recent days. “I have a lot of confidence in you. As soldiers of the Republic of China [ROC], how could we let enemies strut
EFFICIENCY: The rules for Philippine arrivals were revised after 17.6% of arrivals with symptoms tested positive, compared with 0.7% of those with no symptoms Starting today, Chinese spouses who hold a reunion permit can apply to enter Taiwan and travelers without symptoms from the Philippines do not need to be tested for COVID-19 upon arrival, but are to be tested after a 14-day quarantine, the Central Epidemic Command Center (CECC) said yesterday. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that from today, Chinese who are married to a Taiwanese citizen and hold a reunion permit can apply to the National Immigration Agency for entry into Taiwan. Chinese who are married to a foreign national and hold an accompanied reunion permit