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In the past 20 years, foreign owned companies have made a great contribution to China’s social progress and have become an integral part of China’s economy. Although China has enjoyed rapid development and a wealth of capital, it will never stop trying to attract foreign capital and it will never turn its back on foreign companies. China’s policy of investment and cooperation will not change, said Wang Yang, deputy Prime Minster of China’s State Council.

The basic policy of attracting foreign capital has not changed.

With China’s GDP ranking 2nd in the world, its companies are becoming more competitive. The pattern of attracting foreign investment inwards and encouraging domestic companies to go abroad is shifting, but China’s basic policy of attracting foreign capital has never changed. To date it has attracted 1.5 trillion dollars in foreign direct investment, topping the developing world for 22 years. In 2013 it attracted 124 billion dollars and ranked 2nd in the world. At the same time, foreign-owned companies have also gained great benefits in China - 85% of foreign-owned enterprises are making profits and 90% are willing to expand their investment in China.“Money” is not only the focus in terms of attracting foreign capital.

Foreign capital has two functions in reform and opening-up. Foreign capital helps China to become the world’s largest trader, manufacturer and exporter, and plays a role in helping China to integrate into the world.

However, in the process of attracting the foreign capital China has not significantly improved its technology and scientific research level. Wang Yang noted that it is important to introduce advanced technology, sophisticated management techniqes, and intellectual resources. To set up an economic system consistent with international rules plays a key role in upgrading China’s economy.

Creating a fair investment environment is the key.

Creating a fair investment environment is an increasingly important means of attracting foreign capital. A fair competitive environment is more attractive to foreign companies than preferential policies. As a result, China will make its market more open to outside investors and supranational privilege will be eliminated in attracting foreign capital. Private, state-owned and foreign enterprises should be treated equally.

The article is edited and translated from《引進(jìn)先進(jìn)技術(shù)經(jīng)驗(yàn) 借鑒成熟市場(chǎng)做法》, source: People's Daily Overseas Edition, author: Zhou Xiaoyuan