Economy

Overseas investment regains confidence in south China

By Li Wenfang (chinadaily.com.cn)
Updated: 2010-03-11 20:25

GUANGZHOU: Investment budgets of foreign enterprises in South China increased by 44 percent year-on-year this year, nearly recovering to pre-financial crisis levels, although 3-year budgets lag in recovery.

The survey, commissioned by the American Chamber of Commerce in South China and unveiled yesterday, also found its members will reinvest a minimum of $9.4 billion this year, with more than 90 percent considering the business environment to be good, very good or excellent.

The chamber's 2010 "White Paper" suggests that both the US and Chinese governments continue to resist protectionism, and that foreign-invested enterprises in China, now paying the same taxes as domestic enterprises and subject to the same laws and regulations, be treated as "Chinese" companies.

The chamber also suggests that its members consider innovating design and production methods to reach the large, relatively untapped market of second- and third-tier cities, and that the Chinese government continue to strive for greater transparency in its regulatory and legislative efforts.

The "White Paper" also notes that many of the most famous innovative companies would not, were they being started today under similar circumstances, be able to incorporate in China. Regulatory requirements, such as minimum amounts of registered capital and the necessity of an office lease prior to company registration, would have hindered them.

It suggests that relevant authorities revisit these regulations.

AmCham South China has conducted its Special Report study annually since 2006 and the 2010 "White Paper" is the second in the series.