Nearly 6,000 foreign-invested enterprises were established in Shenzhen in 2021, up 30% year on year, a source from Shenzhen’s commerce bureau said. Shenzhen’s actual use of foreign capital exceeded US$10 billion, increasing by more than 20% year on year, the report said.
So far, Shenzhen had gathered enterprises from 160 countries and regions including 300 Fortune 500 companies. The number of direct foreign investment projects has reached 100,000 accumulatively. Shenzhen has gained widespread recognition from international investors. Its policy supports and incentives are the key factors in attracting foreign investments.
A view of Luohu CBD of Shenzhen. File photo
Earlier this year, the Standing Committee of the Seventh Shenzhen Municipal People’s Congress unveiled a draft of Foreign Investment Regulations of Shenzhen Special Economic Zone to seek public suggestions.
The city will promote the building of a foreign-related legal service system and let overseas companies enjoy the same policy support designed for local companies, according to the draft.
It will build a mechanism for urgently needed talents and streamline procedures for foreign talents to live and work in Shenzhen. The city will issue measures like faster entry into the country to support foreign-funded enterprises and make it more attractive to these talents, the draft showed.
In January 2021, the Regulations of Shenzhen Special Economic Zone on Optimizing Business Environment came into force.
The regulations ease the market access by allowing all market entities not on the foreign investment “negative list” to have equal access. Also in 2021, the city issued regulations to encourage multinationals to set up headquarters in Shenzhen and 35 overseas enterprises like Walmart, CR Vanguard, Kareway Health and McQuay have been identified as headquarters enterprises of multinational corporations in Shenzhen.
Data showed the actual use of foreign investments kept increasing from US$6.6 billion in 2016 to US$10 billion in 2021, and over 40,000 foreign-invested enterprises were set up during the period.
Qianhai has become a major destination for foreign investments. Qianhai’s actual use of foreign investments had taken up 50% of its total investments.
(Source | Shenzhen Daily)