China's WTO report 2003 foreign investment will be

China's WTO report 2003: the absorption of foreign investment will be subject to deep constraints

China's WTO report 2003 issued on April 9 reminds that although China has become a large country in the world to absorb foreign investment, However, China has not yet formed a solid foundation conducive to the absorption of European and American investment, and the absorption of foreign investment will be deeply restricted by nine aspects

the report points out that there has been no turning change in the industrial structure of foreign investment, and the quality and level of foreign investment have improved, but there are still limitations

there is a structural imbalance in our industrial guidance of opening to the outside world and absorbing foreign investment. The manufacturing industry has a high degree of openness and the intensity of preferential measures is relatively large, while most departments of the service industry also restrict or even prohibit the entry of foreign investment. The overall market environment has also caused many limitations in foreign investment in the service industry

the reduction of the average scale of foreign investment projects is also disturbing. The average scale of foreign investment projects in China was US $2.984 million in 1996, and then decreased to US $2.422 million in 2002. The growth rate of absorbing foreign investment in the central and western regions is lower than the national average, and its proportion in China's absorbing foreign investment is further reduced. There is a trend of further "Marginalization" under the state of WTO

the source structure of foreign investment has changed to some extent, but the investment growth in Europe and the United States has fluctuated. In particular, in the past two years, the national absorption of foreign investment has increased significantly, while the investment of the European Union and the United States has a negative growth or is much lower than the average growth rate. This shows that China has not formed a solid foundation conducive to absorbing European and American investment

China WTO report 2003 pointed out that China's absorption of foreign investment will be mainly restricted by nine deep-seated factors

first, the limitations of the overall opening-up strategy

under the current situation of opening to the outside world, the strategic model of first pilot and then promotion in the past has become more and more difficult to meet the requirements of economic and social development, and has also caused great constraints on the absorption of foreign investment. "Pilot" opening-up has become a shield for some departments and industries to open slowly or even not

the legal system of the market economy is not perfect, the legal basis, legislative procedures and operating mechanism have not yet turned to the market economy, there are many provisions in relevant laws and regulations that are contrary to the principles of the market economy, and there are also some problems in the implementation process, which have caused the greatest obstacles to foreign investment operating in the market economy environment. In the process of measurement caused by the market economy environment, there are various problems. The prominent problem is the regional segmentation of the domestic market and the weak protection of intellectual property rights

the third is the limitation of macroeconomic environment

we must see the particularity of China's economic development. The highest growth rate in the world in the past few years did not bring the fastest growth of foreign investment in the world. Even on the contrary, it also shows the problem. In the future, China's macro-economy will continue to operate in a deflationary manner. It is difficult to make a big change in consumer demand, and deflation is difficult to ease in the short term. It will also reduce the opportunities for foreign investment and relatively narrow the profit space. Moreover, China's economic growth is still extensive, so even if the nominal growth rate is the highest in the world, the internal quality is not high, which will inevitably restrict the level of absorbing foreign investment

we must also pay attention to the possibility that foreign investment may be "squeezed out" under the condition of continuing to implement the active fiscal policy

Fourth, the limitations of foreign investment industrial policy

the overall thinking and specific practice of China's industrial policy of absorbing foreign investment are limited by the planned economy model, and the revision of the catalogue lags behind the requirements of industrial development and foreign investment, so it fails to realize the effective guidance of foreign investment. In practical work, there are also phenomena that encouragement cannot be encouraged and restriction cannot be restricted

fifth, the limitation of the focus of foreign-invested industrial development

in recent years, the production capacity in most manufacturing fields in China has exceeded the demand, and the focus of economic development has changed from expanding production capacity to improving effective supply capacity, which requires a corresponding change in the focus of China's industrial policy for absorbing foreign investment, from encouraging productive foreign investment to encouraging foreign investment that can improve the quality of economic growth, That is, foreign investment in service and agriculture with strong correlation effect. Unfortunately, we have not been able to make this change in time

the way of merger and acquisition in transnational investment is very convenient for China to use. Unfortunately, however, China lacks the basic conditions for the implementation of foreign acquisitions and mergers, especially the necessary legal and policy environment

seven is the limitation of capital market opening

up to now, China's foreign investment has always encouraged manufacturing investment, but now, the development of high-tech industries, even in traditional industries, venture capital, fund investment and securities investment are indispensable. The opening of capital market should be more cautious than the opening of general fields, but if the opening lags behind, it will also avoid the impact and lose the development opportunity at the same time

eight is the limitation of absorbing foreign investment carriers

up to now, the measuring range has been adjusted according to the method of 3 until it is required. The main body of attracting investment in China is state-owned enterprises that understand the operation steps of hydraulic universal testing machine. However, there are inevitable contradictions and conflicts between fully market-oriented foreign investment and state-owned enterprises in terms of business objectives, business philosophy, business mechanism, management mode, etc. while the most dynamic private enterprises in China's economy are limited by various policies in addition to their low level of joint venture and cooperation with foreign investors. For example, private enterprises and foreign joint ventures will first encounter difficulties in project approval. Now it seems that in the short term, other types of enterprises are subject to their own development level and policy limitations, and still can not become the main carrier of foreign investment

9 is the limitation of the advantages of absorbing foreign investment factors

in the final analysis, the scale and quality of China's absorption of foreign investment are the result of the interaction of the advantages of comprehensive investment factors. The situation of foreign investment in China in recent years shows that our advantages of abundant and cheap production factors such as labor force, land and natural resources and investment attraction factors such as broad market are weakening in the global competitiveness

in addition, it must be mentioned that too much emphasis is placed on attracting high-tech investment and investment by multinational corporations, discriminating against or even restricting small and medium-sized, labor-intensive foreign investment that is conducive to giving full play to China's comparative advantages, and too much reliance on administrative means to achieve policy objectives in policy formulation, which violates the economic law, weakens the basis of industrial upgrading and greatly limits the degree of market access, Objectively, the foreign capital that should come in did not come in. This is also an important reason why China's absorption of foreign investment has not reached the theoretical expectation in recent years