He Yadong, the spokesperson for China's Ministry of Commerce, introduced that in recent years, the scale of reinvestment by foreign enterprises in China has continued to grow. Some foreign enterprises, during the Foreign Investment Roundtable organized by the Ministry of Commerce, proposed the hope to lift the restrictions on using domestic loans to meet part of the funding requirements for reinvestment. To implement the Foreign Investment Law and encourage multinational companies to establish headquarters in China, the Ministry of Commerce and the State Administration of Foreign Exchange (SAFE) have decided to abolish the notice issued in 2011 regarding the management measures for foreign investment companies, removing the restriction on using domestic loans for equity investment by foreign investment companies.
If foreign investment companies have financing needs, they can apply according to regulations such as the "Commercial Bank Merger Loan Risk Management Guidelines." Foreign enterprises facing any difficulties in investment and operation are encouraged to reflect them to foreign investment task forces at various levels or directly report to the Ministry of Commerce through the "Foreign Enterprise Issues Collection and Handling" system. The Ministry of Commerce will make efforts to coordinate and push for solutions to the reasonable demands of foreign enterprises, providing a favorable business environment for foreign enterprises to invest and operate in China.
How is the Development of Foreign Enterprises in China?
Public data shows that from January to November 2024, the number of newly established foreign-invested enterprises in China reached 52,379, representing an 8.9% year-on-year growth.
Over the years, numerous multinational companies have collaborated with the Chinese market, contributing to China's economy, sharing in the dividends of China's development, and "growing together with China" is a common sentiment among many multinational enterprises. For many foreign companies, China today is not only a production base and a huge market but also a strategic hub and source of innovation. BMW Group, which has been rooted in China for 20 years, along with many other foreign automakers, has shifted its business strategy from "In China, for China" to "In China, for the world." In the face of sluggish global economic growth and the complexities of international affairs, a large number of foreign enterprises have not slowed down their expansion into China. Instead, they have actively seized opportunities in new industries and emerging trends, moving from manufacturing to research and development. The continuous upgrading of foreign investment strategies in China and deep localization has gradually created a win-win situation where both domestic and foreign enterprises move forward together. According to a recent report by the China EU Chamber of Commerce, nearly 60% of the surveyed companies stated that they would "moderately increase" or "significantly increase" their R&D spending in China over the next five years.
