Comprehensive lifting of restrictions on foreign investment in the manufacturing sector” was the blockbuster news announced by China at the opening ceremony of the third “One Belt, One Road” International Cooperation Summit Forum.
What does it mean to completely lift restrictions on foreign investment in the manufacturing sector? What impact will it bring? What clear signal was released?
What does “total cancellation” mean?
Chen Wenling, chief economist, deputy director of the Executive Board and deputy director of the Academic Committee of the China Center for International Economic Exchanges, told Sino-Singapore Finance that the comprehensive lifting of restrictions on foreign investment access in the manufacturing sector means that China’s manufacturing industry will continue to transform and upgrade in the future . There is no barrier for foreign investment to enter.
Bai Ming, a member of the Academic Degrees Committee of the Ministry of Commerce Research Institute, told a reporter from Sino-Singapore Finance that in fact, the comprehensive lifting of restrictions on foreign investment access in the manufacturing sector is a step-by-step process. It was initially liberalized in the free trade pilot zone and is now liberalized. The scope has been expanded to the whole country, and the free trade pilot zone has been promoted and replicated nationwide. The process from pilot to promotion has been completed and it is a matter of course.
On September 27, Vice Minister of Commerce Sheng Qiuping stated at a press conference that at present, the negative list for foreign investment access in the pilot free trade zone has been “cleared” of the manufacturing industry, and the next step will be to focus on promoting the opening of the service industry. The Ministry of Commerce will work with relevant departments to conduct in-depth research and promote the rational reduction of the negative list of foreign investment in the pilot free trade zones. At the same time, we will promote the introduction of a negative list for cross-border service trade and lead the country’s continued expansion of opening up.
What impact will it bring?
In Bai Ming’s view, the complete lifting of restrictions on foreign investment in the manufacturing sector is, on the one hand, a full reflection of China’s high-level opening up, and on the other hand, it is also the need for the development of the manufacturing industry itself.
He pointed out that the more open we are, the more opportunities there will be for cooperation, because the high-quality development of China’s manufacturing industry requires the use of more high-quality international factors. Only by fully opening up can we optimize the allocation of global resources. Especially at the stage when China is moving from a large manufacturing country to a powerful manufacturing country, the opportunities brought by opening up should be emphasized.
Bai Ming believes that full liberalization will indeed create certain competitive pressure on domestic manufacturing companies. Under pressure, the fittest will survive. Companies with strong competitiveness will be able to withstand the pressure and even have greater room for development. Because the more promising a company is, the more foreign companies are willing to cooperate with it when entering the Chinese market. In this way, they can complement each other’s advantages and grow bigger and stronger. More importantly, learning from others’ strengths through cooperation will add new impetus to the transformation and upgrading of China’s manufacturing industry.
Four motor giants invested in China in the first three quarters of 2023
Nord Yizheng factory was officially put into operation, with a planned annual output of 400,000 reducers and 1 million motors.
On the morning of April 18, Germany’s NORD held a commissioning ceremony at its new factory in Yizheng, Jiangsu. The successful holding of the ceremony marked the official launch of NORD’s new factory – NORD (Jiangsu) Transmission Equipment Co., Ltd. It is reported that the Nord Yizheng factory will start construction in October 2021, with a total production area of 18,000 square meters and an annual output of 400,000 reducers and 1 million motors. This factory is the fourth factory built by NORD Group in China and aims to continue to strengthen its strategic investment in the Chinese market. The commissioning of the NORD Yizheng plant is an important milestone. It will complement NORD’s factories in Suzhou and Tianjin and comprehensively enhance NORD’s production capacity supply and customer service in China.
The total investment exceeds 10 billion yuan! Saiwei Transmission settles in Foshan
On May 6, Saiwei Industrial Reducer (Foshan) Co., Ltd., a wholly-owned subsidiary of Saiwei Transmission (China) Investment Co., Ltd., successfully bid for Lungui, located in Daliang Street, Shunde District, for 215.9 million yuan at 3 pm on the same day. The land west of the road (about 240 acres). The project is expected to have a rolling cumulative total investment of more than 10 billion yuan and will create its largest manufacturing base in South China.
The German SEW South China Manufacturing Base Project (hereinafter referred to as the SEW Project) has a total land area of approximately 392 acres and is being promoted in two phases. The planned floor area ratio of the first phase of the project land (approximately 240 acres) is not less than 1.5. It is planned to be listed for sale in the first quarter of 2023. It will be completed and put into production in 2026. It is expected that the rolling cumulative total investment of the project will exceed 10 billion yuan, of which the fixed asset investment (including land price) will not be less than 500 million US dollars or the equivalent of RMB, and the average annual tax revenue of each phase of the project will not be less than 800,000 yuan/year from the year of reaching capacity. mu.
Nidec (formerly Nidec), the world’s largest motor manufacturer, opens its South China headquarters in Foshan
On May 18, the opening ceremony of Nidec’s South China headquarters and R&D center project was held in the Nanhai area of Sanlong Bay, Foshan. As a multinational listed company in the electronic and electrical industry and the world’s largest motor manufacturer, Nidec’s South China headquarters and R&D center will mainly focus on electric drive vehicles, as well as electric drive systems, motion control and other businesses in the field of industrial automation, and strive to become the industry leader. An influential company within the country.
The project is located in Xinglian ERE Technology Park, Nanhai District, Sanlong Bay, covering an area of over 6,000 square meters. It will build a South China headquarters and R&D center integrating R&D and project management, marketing, administrative management and other functions.
BorgWarner: Invests 1 billion in motor factory to put into production
On July 20, the Tianjin factory of BorgWarner Power Drive Systems, a global leader in auto parts, held an opening ceremony. The factory will become BorgWarner’s most important production base in North China.
According to previously disclosed information, the project will start in Tianjin in July 2022, with a total investment of 1 billion yuan. It is planned to be constructed in two phases. The first phase of the project will build 13 fully automatic production lines, with complete new product development and supporting production line development, Test verification laboratory, etc.
In addition to the above investment in the motor industry, since this year, executives from multinational companies such as Tesla, JPMorgan Chase, and Apple have visited China intensively; Volkswagen Group has invested approximately 1 billion euros to establish a research and innovation center in Hefei focusing on intelligent connected electric vehicles. and procurement center; Danfoss Group, the world’s refrigeration industry giant, has launched a global refrigeration R&D and testing center in China… The depth and breadth of foreign manufacturing investment layout in China continues to expand.
Post time:
Oct-25-2023