Circular to promote foreign capital utilization
The Shanxi Provincial Government recently issued a circular to further promote the utilization of foreign capital in key fields.
The circular regulates a number of measures in 10 aspects, including continuing to expand opening-up, encouraging foreign investment in key industries, rewarding actual use of foreign investment projects, improving the convenience of foreign investment, holding foreign investment promotions, and protecting the legitimate rights and interests of foreign investment in fields such as new energy vehicles, aviation, telecommunications, energy, semiconductors, photovoltaic industry, new materials, transport equipment, and big data.
The circular will play a positive role in building open and pragmatic cooperation platforms, establishing a working mechanism to serve foreign investment projects, optimizing the business environment for foreign investment, implementing incentive policies, and making good use of foreign investment.
Shanxi has seen significant progress in promoting the utilization of foreign capital in recent years.
In 2020, the operating revenue of foreign-funded enterprises in Shanxi accounted for about 16 percent of the operating revenue of all the province's enterprises above designated size – those with annual revenues of 20 million yuan ($3.13 million) or more. The R&D investment of foreign-funded enterprises accounted for about 8 percent of the province's total enterprise R&D investment, and their taxation accounted for about 6 percent of the total.
From January to October this year, 103 foreign-funded enterprises were registered in Shanxi, accounting for 20.4 percent of all newly registered enterprises in the province. The province's actual utilized foreign capital increased 16.9 percent year-on-year to $240 million during the period, according to statistics from the Ministry of Commerce.