Deputy Prime Minister, Key Figure in China's Economy, Says "No Discrimination Against Foreign-Invested Enterprises" as Foreign Investment Declines

Deputy Prime Minister Heoripung speaks at Foreign Investment Workshop Roundtable
"Must break unreasonable restrictions to attract substantial foreign investment"

As China faces difficulties in attracting foreign investment this year, the 'economic powerhouse' Vice Premier has instructed to rectify discrimination against foreign-invested enterprises in areas such as government procurement.

Chinese Vice Premier Hu Lipeng (center in photo) [Image source=Reuters Yonhap News]

According to the state-run Xinhua News Agency on the 1st, He Lifeng, Vice Premier of the State Council who is regarded as overseeing China's economic affairs, said at a foreign investment work symposium held in Beijing that day, "We must accurately grasp the new situation currently faced by foreign investment work, further strengthen confidence and determination, and improve foreign investment attraction and utilization work."

Vice Premier He stated, "We must adhere to the orientation of goals and problems, further ease market entry restrictions, break unreasonable limitations, and turn the advantages of a large-scale market into substantial foreign investment attraction." He added, "Domestic and foreign-invested enterprises should be treated without discrimination in large-scale equipment replacement, government procurement, and bidding participation, and channels for responding to and resolving foreign-invested enterprises' demands should be smooth." He also urged timely explanation of policies to foreign-invested enterprises, listening to their demands, and responding to their concerns.

Vice Premier He emphasized that provinces with high foreign investment attraction should take on greater responsibility and roles to increase the intensity of foreign investment attraction. He further added that various open platforms such as free trade pilot zones, national-level economic and technological development zones, comprehensive bonded zones, and national comprehensive pilot zones for expanding service industry opening-up should take the lead.

Xinhua News Agency reported that officials from relevant central government departments including the Ministry of Commerce and local government leaders from northeastern Liaoning Province attended the symposium that day.

The reason Vice Premier He called for rectifying discrimination against foreign-invested enterprises is due to difficulties in attracting foreign investment. China's foreign direct investment (FDI) from January to May this year amounted to 412.51 billion yuan (approximately 78.7 trillion won), down 28.2% compared to the same period last year. For the Chinese government, which has set an economic growth target of around 5% similar to last year, this is a factor causing a sense of crisis.