Einde inhoudsopgave
Exit remedies for minority shareholders in close companies (IVOR nr. 82) 2011/2.2.3.1
2.2.3.1 Foreign Direct Investment (FDI) in China
dr. Q. Wang, datum 02-05-2011
- Datum
02-05-2011
- Auteur
dr. Q. Wang
- JCDI
JCDI:ADS402995:1
- Vakgebied(en)
Ondernemingsrecht (V)
Voetnoten
Voetnoten
Investment from Hong Kong, Macaw and Taiwan is treated as foreign investment by the Chinese Government.
Information is from the website of Ministry of Commerce of the People's Republic of China, http://www.mofcom.gov.cn,http://www.fdi.gov.cn/pub/FDI/wztj/wstztj/lywzfgbdqtj/t20090122_101099.htm.
See the 'Catalogue for the Guidance of Foreign Investment Industries (revised in 2007), promulgated by the State Development and Reform Commission, the Ministry of Commerce.
From 1
See 'Provisions on Guiding Foreign Investment Direction', approved and promulgated by the State Council on Feb. 21, 2002.
Jiao Zhiyong, General introduction on Foreign Investment Enterprises in China, Publish house of Capital University of Economics and Business, 2000.
China's Tenth Five-Year Plan (2001-2005), part 11, What measures will the Chinese government take to expand the scale and enhance the level of foreign investment? 'Transnational companies will be encouraged to invest in high-tech industry and infrastructure. Effective measures will be adopted to encourage transnational companies to invest in the construction of R&D centers and regional headquarters.'
Sectors like banking, insurance, telecommunications, domestic and foreign trade and tourism will further be opened as said in the WTO negotiations.
Zhao Jinping, outlook of FDI in 2006, 12 02, 2005, http://theory.people.com.cn/GB/49154/49155/3909499.html.
China's Tenth Five-Year Plan (2001-2005), part 11, 'Foreign capital introduction will be closely linked with Western Development. In implementing the Western Development strategy, there will be more opportunity for foreign investment within infrastructure construction, environmental protection and technological development. The govemment will coordinate and encourage foreign-invested companies in China to re-invest in central and western regions.'
Wang Yumei, On China's Legal System Goveming Foreign Direct Investment, Law Press China, 2003, see also Jiao Zhiyong, General introduction on Foreign Investment Enterprises in China, Publishing house of Capital University of Economics and Business, 2000.
Information from the website of the Ministry of Commerce of the People's Republic of China, Jan. 2005, http://english.mofcom.gov.cn/aarticle/speechandactivity/spokesmanremarks/200501/20050100014420.html.
Since the enforcement of the open door policy initiated by Deng Xiaoping at the end of the 1970s, China has seen a period of sustained economic growth. This robust economic growth and performance has boosted the confldence of foreign investors, and the FDI by foreign investors has, in turn, contributed to a faster economic growth in China. In 2009, the amount of FDI in China was around 90 billion dollars.1 The top 15 countries and places of FDI inflow are: Hong Kong, Virgin Islands, South Korea Japan, USA, Taiwan Province, Cayman, Singapore, west Samoa, Germany, UK, the Netherlands, France, Australia, and Canada.2 The Netherlands is ranked twelfth worldwide and the third in the EU.3 Thanks to FDI, China develops faster and continues to improve its legai climate.
FDI in China is grouped into four categories according to investment areas: encouraged, permitted, restricted, and prohibited.4 FlEs enjoy tax preference,5 and the encouraged group can have the benefit of more preferential treatment.6
Four noteworthy phenomena of FDI have been demonstrated. Primarily, most of the capital injection in China goes to the low-technology, labour-intensive manufacturing sector, which makes China "the world's factory".7 A shift to the high-tech and infrastructure areas is desired by the government.8 Secondly, in accordance with China's commitment upon entering the WTO, FDI is gaining broader market access in China.9 Thirdly, FIEs are set up predominantly in the east coastal part of China. In 2005, 90 per cent of the total FDI inflows went to the east coastal area; 6.7 per cent and 3.1 per cent went to the middle and west areas respectively.10 Government policy thus expressly stated the intention to promote balance in regional economie development in its Tenth Five-Year Plan.11 Another fact is that FDI in China is ever growing. More investors now pump in capital to enlarge their business scale and set up headquarters in China.12 According to a survey published in China Daily, so far, more than 400 of the world's top 500 companies have launched business in China, among which nearly 30 have set up regional headquarters.13 In conclusion, after twenty years of dedication, the scale of FDI in China has been tremendously expanded and the level is considerably upgraded as well.