China to strengthen economic globalization
Industrial relocation has been a common phenomenon in globalized competition. Companies shift their production around the world in the course of industrial development. As you said in your question, while some companies relocated their production outside China, others have chosen to stay here. I trust you will invest more in China.
Why do I say so? My comment is based on the fact that foreign investment has been increasing in China despite moderating foreign direct investment globally. In the first five months of this year, utilized foreign investment in the manufacturing sector grew by over eight percent year-on-year. This is because China has an industrial system that meets the needs of globalization and a huge market with tremendous potential. I am confident that China will become more competitive in the global industrial chain as long as there is free trade and market principles and commercial rules are followed.
That does not mean that China would sit idle and simply wait for more foreign investment to come in. We will continue to foster a world-class, market-oriented business environment governed by a sound legal framework, step up efforts for opening up, and more effectively protect the rights and interests of foreign investors.
We are all cooperation partners. As such, we should go for fair competition. Thank you.
Kevin Sneader, Global Managing Partner of McKinsey & Company: I have two questions related to innovation, as it affects foreign-invested enterprises. I understand that at a State Council executive meeting in May, a number of measures were studied with regard to improving the innovation capacity of enterprises, specifically for example, increasing R&D investment, improving innovation mechanisms, opening innovation and making it more shareable, and tax incentives and other forms of support. Will these same measures be open and applicable to foreign-invested enterprises? How do you envisage foreign-invested enterprises' participation in China's innovation environment?
Premier Li: Innovation is crucial to China's pursuit of greater development and economic transformation. We have introduced an array of policies supporting innovation, including tax incentives, such as additional deductions for R&D spending, and the percentage of such deductions will continue to increase. In the financial sector, we are providing support for the development of venture capital.
As to how foreign companies may access the innovation-supporting policies provided by the Chinese government, let me say that companies registered in China, be they foreign-invested or domestic, will be treated as equals and be eligible for all related policies. Foreign companies may file complaints if they are denied access. The Chinese government has opened online channels for receiving such complaints.
