Op-Ed Contributors

No dearth of foreign investors

By Yang Changyong (China Daily)
Updated: 2010-05-18 07:50

"The State Council Proposal on Further Improving the Work of Using Foreign Investment" released on April 6 put forward that China will further expand the scale of opening up, optimize foreign investment structure, promote diversified ways to attract foreign investment, deepen the reform of foreign investment management system and create a favorable investment environment.

This could be considered as the most explicit signal that the nation's investment environment will be further improved, as well as the most effective response to the accusation of deteriorating investment environment in China.

However, two points need to be clarified as far as the process of improving investment environment in China is concerned.

First, it needs time to optimize the investment environment in China, especially when it comes to improving the related institutions and regulations. Implementing the central government's regulations at various local government levels cannot be done overnight.

During this period, it is inevitable that foreign investors might encounter some dissatisfaction. Since embracing reform and opening up policies, China has shown great sincerity in attracting foreign investment and has amended the Catalogue for the Guidance of Foreign Investment Industries five times.

The scale of opening up is being constantly expanded. We believe that the general trend of China's improving investment environment will not change and the investment environment will definitely optimize gradually.

Second, to improve investment environment needs not only that China is sincere toward foreign investors, but also understanding and respect from their foreign counterparts, including foreign investors and media.

For foreign enterprises, abiding by the Chinese law, custom and culture is the most fundamental business ethic. As it is said in the Book of Rites - when you come to a new place, you should ask what is taboo first; when you come to a new nation, you should know the customs first; when you come to a new family, you should ask what is forbidden first.

Meanwhile, in the face of investment barriers, foreign investors could seek resolution through reasonable channels in coordination with the concerned departments.

If they merely resort to complaining about the investment environment and bad-mouthing the Chinese economy, which are then magnified by the Western media, it might delay the process of improving investment environment in China and will finally damage their own interests.

The author is an assistant researcher at the Institute for External Economic Policy Studies, National Development and Reform Commission.

(China Daily 05/18/2010 page8)

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