The novel coronavirus pneumonia epidemic has been seriously affected by the global spread of the world economy, resulting in economic contraction in the world's major economies, hitherto unknown global investment and trade shrank in 2020. According to the United Nations Research Report, global FDI will decline by 40% in 2020. Half of this year has passed. Judging from the economic operation in the second quarter, China's economy has gone through the most difficult period. In the first five months of this year, China's actual use of foreign capital was US $51.21 billion, a year-on-year decrease of 6.2%. The pressure to stabilize foreign investment was still great, but the cumulative decline rate was 7% lower than that in the first quarter. Since the second quarter, the situation of foreign investment has improved. In May, the actual use of foreign capital was 9.87 billion US dollars, an increase of 4.2% year on year. This is directly related to the policies of stabilizing foreign investment launched by Chinese governments at all levels.

As the six key tasks of this year, the goal of stabilizing foreign investment is to continuously enhance the confidence of foreign investors in long-term investment and operation in China. Novel coronavirus pneumonia was issued by the Ministry of Commerce in February 18th. The Ministry of Commerce issued the circular on "coping with the new crown pneumonia epidemic situation and promoting consumption in a stable foreign trade and stable foreign investment". In March 9th, the national development and Reform Commission promulgated "11 stable foreign investment". In April 1st, the Ministry of Commerce proposed 24 measures to fully support the normal operation and order of foreign enterprises and optimize the foreign investment environment continuously. On June 23, the Special Administrative Measures for foreign investment access (negative list) (2020 Edition) and the Special Administrative Measures for foreign investment access in pilot free trade zones (negative list) (2020 Edition) were released. The negative list of foreign investment was further reduced, and the opening level of service industry, manufacturing industry and agriculture was further improved.

Recently, the Ministry of Commerce said that it was studying and formulating new measures to stabilize foreign trade and foreign investment. It includes revising the catalogue of industries encouraging foreign investment, further expanding the scope of encouragement, revising and promulgating regulations such as the measures for complaint against foreign invested enterprises, so as to further create a market-oriented, legalized and international business environment. We will speed up the introduction and implementation of a series of specific measures to stabilize foreign investment, so as to provide more new impetus for the sustained growth of foreign investment.

Judging from the global epidemic situation and economic situation, China has basically controlled the epidemic situation, and has taken the lead in the world in resuming work and production, and has taken the lead in restoring economic momentum. The production and operation of foreign-funded enterprises in China has gradually become normal, and the completion of orders has been improving. China's steady and good economic situation has allowed more foreign investment to "vote with their feet". A number of new foreign investment projects have been implemented continuously, and the confidence of foreign investors has gradually increased. In particular, the domestic capital market continues to warm up. On the one hand, it signals the recovery of market confidence, on the other hand, it also accelerates the continuous inflow of international capital. The basic situation of foreign capital is stable. China's attraction to foreign investment has been increasing and remains one of the important investment destinations for foreign investors, which fully demonstrates the stability and tenacity of China's investment environment.

To create a better business environment for foreign investment will not only continuously enhance the attractiveness of foreign investment, but also continuously enhance the confidence of foreign investors in long-term investment and operation in China. The biggest attraction of an economy is market potential and regulatory environment. After all, the business environment is productivity. In 2019, the world ranking of China's state-owned business environment will rise from 46th to 31st. While seeing this progress, we must pay more attention to further improving the value of business environment work. In particular, we should further promote the transformation of government functions and the deepening of the reform of "deregulation, management and service", build a fair, rule of law and efficient law enforcement environment, focus on the implementation of foreign investment law, ensure the consistency and unity of the implementation of laws in different places, effectively strengthen the protection of property rights including intellectual property rights, further improve the financing service system, and change the insufficient supply of innovative resources and innovation The situation of uneven distribution of resources, consolidate the effect of tax and fee reduction, be practical, and further create a fair competition market environment, so that foreign investment is willing to come, stay and develop.

Source: China Trade News