Foreign enterprises praise opening-up drive

By Shen Weiduo Source:Global Times Published: 2019/11/11 22:43:42

Country creates equal playing ground, firms must learn to adapt


A visitor poses for photos with Jinbao, mascot of the China International Import Expo (CIIE), during the second CIIE in Shanghai, east China, Nov. 8, 2019. (Xinhua/Liu Ying)


Foreign enterprises have  praised the level of China's opening-up for a series of policies released by the central government, but some also expressed concern over whether more detailed measures could emerge to fast track policy implementation.

Chinese experts, while stressing that local authorities will further scrap limits on foreign investment, simplify administrative measures and draw up more specific rules to address concerns, said that foreign companies should also have confidence in China, understand China's market characteristics and see China with no discrimination.

Wang Yingtao, head of the Beijing representative office for Germany-based dental material manufacturer DMG, said that the just concluded China International Import Expo (CIIE), is the latest example of how China is realizing its opening-up promises.

"In the medical equipment sector, there is normally a long and complicated process before a new type of equipment could enter China's market, but the platform just offers a convenient platform for international players that would like to access this attractive market," Wang told the Global Times on Monday.

The week-long CIIE, which closed on Sunday, achieved a total of $71.13 billion in tentative deals, up 23 percent year-on-year. Among the expo's diverse displays, 391 new products, technologies and services were launched for the first time on the Chinese mainland or worldwide.

Moreover, on November 7, China enacted 20 suggestions on further improving the utilization of foreign investment in four aspects to safeguard a more "fair, transparent and predictable" business environment for foreign-invested enterprises.

For instance, the document pointed out that all local governments and departments shall not discriminate against foreign-funded enterprises in aspects such as the release of government procurement information, and shall not restrict the ownership form, organizational form, equity structure or investor country, as well as products or service brands of suppliers.

Wang said although he welcomes the document, which involved measures addressing key concerns of some foreign companies operating in China, he is worried that the general policy coming from the national level might encounter barriers when it comes to implementation.

"We are looking forward to more practical, detailed measures and standard policies as a follow-up," Wang said.

Other concerns, including "indirect market access barriers, such as complex administrative approval procedures and difficulties obtaining operating licenses," as well as worries about state-owned companies possibly hindering an equitable business environment, were also mentioned in a note the European Union Chamber of Commerce sent to the Global Times previously.

Commenting on these concerns, Cong Yi, a professor at the Tianjin University of Finance and Economics, told the Global Times on Monday that foreign enterprises should have confidence in China, as China has been realizing its opening-up commitment step by step, and has been doing experiments on how to open up the country broader. 

On Saturday, Vice Premier Han Zheng called for pushing forward the construction of a free trade port in South China's Hainan Province during a meeting, stressing that the free trade port should be built in line with the "world's highest level of opening up."

The remarks were made during a meeting regarding the free trade port - the second such meeting within three months.

"Free trade ports could be a testing field of China's opening-up of more sectors in the future, and the intensive meetings were reassurance of the country's resolution of fully getting in line with international standards," Cong said.

When commenting on some companies' concerns about state-owned enterprises (SOEs), experts cautioned that China will continue to set more transparent rules, ensuring equal treatment for both SOEs and foreign companies.

Cong further noted that to further carry out the 20 opinions, China will continue to reduce foreign business limitations and unnecessary administrative intervention. It will also increase the levels at which it manages and attracts international capital, while foreign companies are advised to adapt to a market with Chinese characteristics and help address problems.



Posted in: ECONOMY

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