April 18, 2024

Determination of the Key Tasks for the Development of Foreign Investment Cooperation during the Twelfth Five-Year Plan

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According to the "Proposal for the Twelfth Five-Year Plan for Formulating the National Economy and Social Development of the CPC Central Committee" and the "Twelfth Five-Year Plan Outline for the National Economic and Social Development of the People's Republic of China", the Ministry of Commerce is summing up the "11th Five-Year Plan". During the period of the 12th Five-Year Plan period, based on the development characteristics and experience of China’s foreign investment cooperation and the analysis of the domestic and international situation facing the development of overseas investment cooperation, the guiding ideology and basic principles for the development of overseas investment cooperation during the “Twelfth Five-Year Plan” period were determined. Expected goals, major tasks, and priorities.

During the “Eleventh Five-Year Plan” period, with the continuous improvement of China’s open economy and the “going out” strategy, the foreign investment and cooperation have achieved a leaping development. The scale and speed of rapid growth, business operations in nearly 200 countries (regions) around the world, the average annual growth in direct foreign investment and foreign contracted projects turnover exceeds 30%, the end of the "Eleventh Five-Year" period in the foreign labor service increased by nearly 300,000 people. The quality and level have been significantly improved. From single project construction to regional and cluster model development, the company’s international competitiveness and global operation have been continuously improved. The methods and fields have been expanding, the scale of cross-border M&A has grown rapidly, the construction of overseas trade and economic cooperation zones has progressed, and the foreign investment and cooperation industries have diversified. The government departments’ management system has been continuously improved, the legislative process has been accelerated, and the degree of facilitation has been enhanced. Financial and taxation, finance, foreign exchange, and other policy support efforts have been strengthened, and planning and guidance, information services, personnel training, and safety and security have made remarkable progress. The positive role played by foreign investment cooperation in promoting domestic economic growth and social development, promoting industrial restructuring, and achieving mutual benefit and win-win outcomes between China and foreign countries is further manifested.

During the "12th Five-Year Plan" period, the world's political and economic structure continued to undergo profound changes, and China's economic and social development also presented new stage characteristics. Overall, the development of foreign investment cooperation is still in an important period of strategic opportunities. At the same time, it also faces many risks and challenges. On the one hand, foreign investment cooperation is full of development opportunities. As countries around the world work hard to achieve economic recovery, international direct investment has shown a pick-up trend. The restructuring of international industries and the optimization of resource allocation are speeding up, and the willingness of countries to develop economic and trade cooperation with me will be strengthened. China's overall national strength has been significantly improved, and its industrial advantages have been further manifested. The reform of the exchange rate formation mechanism and the internationalization of the renminbi have been steadily advancing, and the pace of international business operations has been accelerated. The task of speeding up economic restructuring and changing the mode of development in China is becoming more and more difficult. Changes in the mode of foreign trade development, diversification of origin, effective deployment of markets and resources have given new missions to foreign investment and cooperation. On the other hand, foreign investment cooperation also faces challenges and constraints. Contradictions between Chinese and foreign cultures and interests have increased. Global investment protectionism is heating up. The requirements and reviews of foreign-invested projects in some countries have become increasingly stringent, and the resistance to foreign investment and operational difficulties of our enterprises, especially state-owned enterprises, have increased. The international security situation is complex, and foreign investment and cooperation have increased overseas security risks. The current management system and working mechanism for overseas investment and cooperation still need to be improved. The related products and services of financial institutions have not yet met the needs of enterprises, and the intermediary service agencies are relatively lacking. The contradictions among talents in enterprises are outstanding, the market research and judgment and risk prevention capabilities are limited, and the awareness of social responsibility needs to be improved.

In the face of new developments and changes at home and abroad, the Ministry of Commerce proposed that during the “Twelfth Five-Year Plan” period, we must balance domestic development with opening up to the outside world, adhere to the combination of “going global” and “bringing in”, and vigorously develop overseas investment cooperation. Promote the transformation of China's economic development mode and adjustment of industrial structure, promote the transformation and upgrading of foreign trade, and provide services for the overall macroeconomic development and opening up to the outside world in the new era. Promoting foreign investment and cooperation should adhere to the following principles: First, mutual benefit, common development, respect for the development intention of the host country (region), and promotion of local socio-economic development. The second is government guidance, enterprise-based, and market operations, and play a role in independent decision-making and market allocation of resources, and strengthen the government's functions in macro planning and policy guidance. The third is to take multiple measures and promote each other to give play to the service guarantee role of diplomatic work and ensure the legitimate rights and interests of Chinese enterprises and personnel. The fourth is to promote both development and risk prevention, and improve the quality and effectiveness of foreign investment cooperation.

According to the overall requirements of the national economy and social development, the Ministry of Commerce has proposed the goal of the development of overseas investment cooperation during the "12th Five-Year Plan" period. In the next five years, the scale of outbound investment and cooperation will be further expanded, industries and fields will be further diversified, quality and efficiency will be significantly improved, and the ability to use factors of production in the world will continue to increase. A group of transnational corporations and multinational financial institutions will take shape. The position and role of foreign investment and cooperation in the implementation of the strategy of mutual benefit, openness, and openness have been greatly enhanced, forming a pattern of coordinated development of foreign investment and foreign investment introduction, mutual promotion of foreign investment and foreign trade, and playing a greater role in balancing the balance of payments and improving the competitiveness of enterprises. effect. Specifically, foreign direct investment reached 150 billion U.S. dollars in 2015 and an average annual increase of 17% during the 12th Five-Year Plan period. In 2015, the contract value and turnover of foreign contracted projects reached 180 billion U.S. dollars and 120 billion U.S. dollars, respectively, and the average annual growth rate during the 12th Five-Year Plan period was 6%. The foreign labor service cooperation dispatched 550,000 laborers in 2015. At the end of the “Twelfth Five-Year Plan” period, more than 1 million people worked abroad.

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