Analysis: Foreign direct investment in China
Last updated (Beijing time): March 2006-1411:38.
Looking at foreign direct investment since 2005, service industry, energy industry and related industries are still the hot spots of investment growth. At the same time, many inland cities began to become the target areas of foreign investment. With the government of China strengthening the construction of new countryside, the countryside is likely to attract more and more attention.
In recent years, the foreign direct investment attracted by China has continued to grow, reaching an all-time high of 60.63 billion US dollars in 2004. However, in 2005, this growth trend slowed down slightly and decreased slightly year-on-year. In 2005, 4,400 foreign-invested enterprises were established nationwide, up by 0.77% year-on-year, but the actual amount of foreign investment was 60.325 billion US dollars, down by 0.5% year-on-year.
Since April, 2005 (except September, 2005), the amount of actually used foreign capital in China has been on a downward trend, and the amount of actually used foreign capital in the third month of the second quarter has dropped by more than 10%. Such a sharp decline is rare in recent years.
As far as the sources of foreign investment in China are concerned, in 2005, the number of newly established enterprises invested by the United States in China and the amount of investment decreased by 4.69% and 22.32% respectively. The number of newly established enterprises in China in Asian countries (regions) increased by 0.69 percentage points, but the actual use amount decreased by 5. 19 percentage points. The newly established enterprises in some domestic free ports also decreased by 3.21%; However, the number and investment of newly established enterprises in China by former EU member states increased by 17.46% and 22.52% respectively.
The economic development of neighboring countries and developed countries is accelerating. These countries attract foreign investment with their own advantages, which affects the scale of foreign investment utilization in China to some extent. In 2005, Russia attracted 167 billion USD of foreign direct investment, accounting for 2.2% of Russia's GDP. Russian market growth rate is second only to China, ranking second in the world.
In 2005, India attracted more foreign capital than the United States and became the second largest country in the world. The Ministry of Planning and Investment of Vietnam announced that Vietnam will attract US$ 4.5-4.6 billion, making it one of the fastest growing countries in Southeast Asia.
The transition period after China's entry into WTO further lowered the threshold of China market. It is China's comparative advantage to attract foreign investment to enjoy the maximum growth rate of the service trade market. It is predicted that the service industry will remain a hot spot for foreign investment in China for a long time to come.
Retail industry is a service industry in which foreign capital entered China earlier. The opening of the insurance industry makes it possible for foreign companies to gradually enter China. By the end of 2004, China's insurance industry had opened all fields and businesses except some statutory insurance businesses to foreign investors. In 2 005, China's insurance industry was fully opened to the outside world, and the market share of foreign insurance companies increased to nearly 7% in this year.
According to the statistics of China Insurance Regulatory Commission, the domestic insurance market was gradually opened in 2005: three foreign-funded insurance companies were allowed to enter the China market, and 25 foreign-funded insurance institutions were established in China. At present, the number of foreign insurance companies has increased from 14 in 2000 to 40 in 2005. Of the 46 insurance companies in the Fortune 500, 27 have set up agencies in China.
Since February 6th, 2005, China has further opened its banking industry to the outside world. Foreign financial institutions have expanded their RMB business to Shantou and Ningbo, and five cities, Harbin, Changchun, Lanzhou, Yinchuan and Nanning, have been opened ahead of schedule. The latest statistics show that in recent years, the business of foreign banks in China has developed very rapidly, with the annual growth rate of assets, deposits and loans all above 30%.
In September 2005, the Beijing office of Peabody Energy Company, the largest private coal company in the world, was formally established. At present, Peabody Energy has been in contact with Huaneng International, Shenhua Group and some large steel companies. Iron and steel enterprises; In the future, it will also provide raw materials and technical exchanges to China Electric Power and Steel Company. Iron and steel enterprises. Prior to this, AACI had established Shaanxi Yamei Daning Energy Co., Ltd. and obtained 56% of the controlling shares. In addition, Morgan Bank of the United States bought 0/700,000 H shares of Yanzhou Coal Mine/KLOC, and companies from Australia, South Korea, Japan and other countries also went to major coal-producing provinces and autonomous regions in China, such as Shanxi, Shaanxi and Inner Mongolia, to seek shares in locally developed coal mines.
The situation of tight power supply is as usual. Multinational companies are optimistic about the huge market of power generation equipment in China and have accelerated their investment in China. In 2005 10, a joint venture invested by Japan's Mitsubishi Heavy Industries (MHI) was established in Guangzhou, and it began to produce the core components of steam turbines-hot components. It is estimated that by 2065, its sales will reach 8 billion yen. As early as April, 2002, MHI signed a "Joint Venture Agreement" with Dongfang Steam Turbine Works to jointly establish Mitsubishi Heavy Industries Dongfang Gas Turbine (Guangzhou) Co., Ltd., which is a Sino-foreign joint venture that produces hot parts of gas turbines and provides after-sales service and maintenance of gas turbines. The total investment of the joint venture is about 4.5 billion yen, with MHI contributing 5 1% and Dongfang Steam Turbine Company contributing 49%. The joint venture period is 20 years.
In 2004, Alstom France signed a framework agreement with Beijing Jingcheng Machinery Co., Ltd. to establish a joint venture. Electric Holding Co., Ltd. (JCH) and its subsidiary Beijing Heavy-duty Motor Factory have established a long-term partnership for the manufacture of 60,000 000kw steam turbines.
Since the Tenth Five-Year Plan, China has accelerated the pace of international exchanges and cooperation in agriculture and achieved remarkable results. From 200 1 to 2003, there were nearly 3,000 agricultural projects using foreign direct investment, with a total agreed amount of 5.7 billion US dollars. The average annual amount is about $6,543.8+9 billion, which is almost twice as much as the average annual agreed amount of foreign investment in the previous 20 years.
The wage cost of inland cities in China is 20 ~ 50% lower than that of coastal cities, and the wage growth rate is also slower than that of big cities and coastal cities. However, in recent years, the investment environment in these cities has gradually improved. Therefore, some foreign investors stopped investing in Shanghai, Beijing, Guangzhou and other big cities; Instead, they began to look to Nanjing, Wuhan, Chongqing, Ningbo, Dalian, Shenyang and other cities. And a slightly less eye-catching city in the second echelon formation.
Wei Xinghua, chairman of US-China, said that in 2006, American investment in China will not only continue to grow, but nearly half of American companies will also seek to invest in second-and third-tier cities such as Xi 'an, Chengdu and Dalian. In the west and northeast of China. According to him, at present, quite a few industries are shifting in different places; For example, the electronic assembly industry originally in Guangdong can go to Hehaote for production. In addition, there are some traditional advantageous industries, such as agriculture, large machinery, energy and chemical industry. In the middle and west of China. Inland cities are beginning to show their charm, which will create conditions for foreign enterprises to invest there.
Translation:
Analysis: Foreign direct investment in China
Last updated (Beijing time): March 2006-14, 1 1: 38.
Through the comprehensive observation of foreign direct investment, since 2005, service industry, energy industry and related industries are still the hot spots of investment growth. At the same time, many inland cities began to become the target areas of foreign investment. With the Chinese government's efforts to build a new countryside, it may also attract more and more attention in rural areas.
In recent years, foreign direct investment has attracted China, reaching a record $60.63 billion in 2004, with a continuous growth, but in 2005, this growth trend slowed down slightly on the basis of the previous year. In 2005, 4,400 foreign-invested enterprises were newly established in China, with a year-on-year increase of 0.77%. However, the actually utilized foreign capital totaled 6,032.5 billion US dollars, with a year-on-year decrease of 0.5 percentage points.
Since April, 2005 (except September, 2005), the actual utilization of foreign capital in China has declined in a single month, and the profit has decreased. In the second quarter of each of the three months, the actual utilization of foreign capital has exceeded 10%. Such a huge decline is rare in recent years.
So far, among the sources of foreign investment in China, the investment of newly established enterprises and the United States in China decreased by 4.69% and 22.32% respectively in 2005. In some newly established enterprises, the funds from 10 Asian countries (regions) increased by 0.69% in China, but the proportion of actually used investment decreased by 5. 19. Newly established enterprises also reduced their capital by 3.438+0% in some free ports; However, in some newly established enterprises, the capital and investment from the original 65,438+05 EU member States also increased by 65,438+07.46% and 22.52% respectively.
Neighboring countries and developed countries have accelerated their development, and the scale of attracting foreign investment and their own advantages have had an impact. China has utilized foreign investment to a certain extent. In 2005, Russia attracted 167 billion USD of foreign direct investment, accounting for 2.2% of Russia's GDP. Russia ranks second in the world in terms of market growth rate after China.
In 2005, a large amount of foreign capital was attracted to India, making it ranked second in the world, surpassing it and attracting the United States. Vietnam's plan and investment announced that Vietnam will attract 4.5-4.6 billion US dollars, making it the fastest growing country in Southeast Asia.
During the transition period after China's entry into WTO, the threshold of China market will be further lowered. Enjoy the greatest growth potential, and the service trade market is China's comparative advantage in attracting foreign investment. It is predicted that the service industry will continue to be a field to support foreign investment in China for a long time to come.
Retail business entered these service industries in China through foreign capital, but in the early stage; The opening of the insurance industry has gradually enabled foreign companies to enter China. By the end of 2004, China's insurance industry was open to foreign investment in all fields and enterprises except statutory insurance. In 2005, in the first year, China's insurance industry opened to the outside world in all directions, and its market share increased from foreign insurance companies to nearly 7%.
Statistics show that in 2005, the China Insurance Regulatory Commission gradually opened the domestic insurance market: three foreign-funded insurance companies were allowed to enter the China market, and 25 foreign-funded insurance institutions were established in China. At present, the number of foreign insurance companies has increased from 14 in 2000 to 40. * * * There are 27 listed companies, and 46 insurance companies have set up their own institutions in the Fortune 500.
Since February 6th, 2005, China has further opened its banking sector. The RMB business managed by foreign financial institutions expanded to Shantou and Ningbo, and Harbin, Changchun, Lanzhou, Yinchuan and Nanning in other five cities opened ahead of schedule. The latest statistics show that foreign-funded enterprise banks have developed very rapidly in China. In recent years, the annual growth rate of their assets, deposits and loans has exceeded 30%.
In September 2005, Peabody Energy Company, the world's largest private coal company, was formally established in Beijing. At present, Peabody Energy has been in contact with Huaneng International Power International Company, Shenhua Group and some large steel enterprises. In the future, it will also provide raw materials and carry out technical exchanges with China electric power and steel enterprises. Prior to this, AACI established Shanxi Yamei Daning Energy Co., Ltd., and obtained 56% control. In addition, Morgan Bank of the United States purchased170,000 yuan of Yankuang hydrogen storage. Companies from Australia, South Korea and Japan also went to Shanxi, Shaanxi, Inner Mongolia and other major coal-producing provinces in China to seek shares in local coal mines.
The tension is the same as before. Multinational companies believe that the market for power generation equipment is huge, so they have accelerated their investment in China. June 5438+October 2005 10, Mitsubishi Heavy Industries Co., Ltd. (Mitsubishi Heavy Industries Co., Ltd.), a joint venture invested by * * *, was built in Guangzhou by Japan, and began to produce hot parts, the core part of which was a steam turbine; It is estimated that its sales will reach 800 billion yen to 20 10. As early as April 2002, Mitsubishi Heavy Industries signed a "Joint Venture Agreement" and established Mitsubishi Heavy Industries Oriental Gas Turbine (Guangzhou) Co., Ltd., a Sino-foreign joint venture, which manufactures gas turbines with hot parts and provides after-sales service and maintenance. The total investment of this project is about 45 billion yen of the joint venture company, 5 1% of the total investment of Mitsubishi Heavy Industries products, and the other 49% is provided by Dongfang Steam Turbine. The joint venture will last for 20 years.
In September 2005, Peabody Energy Company, the world's largest private coal company, was formally established in Beijing. At present, Peabody Energy has been in contact with Huaneng International Power International Company, Shenhua Group and some large steel enterprises. In the future, it will also provide raw materials and carry out technical exchanges with China electric power and steel enterprises. Prior to this, AACI established Shanxi Yamei Daning Energy Co., Ltd., and obtained 56% control. In addition, Morgan Bank of the United States purchased170,000 yuan of Yankuang hydrogen storage. Companies from Australia, South Korea and Japan also went to Shanxi, Shaanxi, Inner Mongolia and other major coal-producing provinces in China to seek shares in local coal mines.
The tension is the same as before. Multinational companies believe that the market for power generation equipment is huge, so they have accelerated their investment in China. June 5438+October 2005 10, Mitsubishi Heavy Industries Co., Ltd. (Mitsubishi Heavy Industries Co., Ltd.), a joint venture invested by * * *, was built in Guangzhou by Japan, and began to produce hot parts, the core part of which was a steam turbine; It is estimated that its sales will reach 800 billion yen to 20 10. As early as April 2002, Mitsubishi Heavy Industries signed a "Joint Venture Agreement" and established Mitsubishi Heavy Industries Oriental Gas Turbine (Guangzhou) Co., Ltd., a Sino-foreign joint venture, which manufactures gas turbines with hot parts and provides after-sales service and maintenance. The total investment of this project is about 45 billion yen of the joint venture company, 5 1% of the total investment of Mitsubishi Heavy Industries products, and the other 49% is provided by Dongfang Steam Turbine. The joint venture will last for 20 years.
In September, 2005, Peabody Energy Company of the United States was in Beijing office, which was the largest salary expenditure in inland cities of China. 50% is lower than that of coastal cities, and the wage increase is lower than that of big cities and coastal cities. However, the investment environment and other cities have gradually improved in recent years. As a result, some foreign investors stopped investing in big cities such as Shanghai, Beijing and Guangzhou. Instead, they began to look to Nanjing, Wuhan, Chongqing, Ningbo, Dalian, Shenyang and so on. , slightly lower than the eye-catching city of the second echelon.
Mr. Wei Xinghua, Chairman of the China Committee of the American Chamber of Commerce, said that in 2006, American investment in China will not only continue to grow, but nearly half of American companies will also seek to invest in second-and third-tier cities in the western and northeastern regions, such as Xi, Chengdu and Dalian. According to him, many industries have moved to other places. At present, for example, the electronic assembly industry can initially go to Hohhot for production in Guangdong Province. In addition, there are some traditional advantageous industries, such as agriculture, large machinery, energy and chemical industry. In the Middle East and the West. Inland cities are beginning to show their charm, which will create conditions for attracting foreign enterprises to invest.