Shenzhen is The First Choice of Multinational Investment Companies

Shenzhen has become one of the fastest growing cities in the world and China's most active economy. In the first three quarters of this year, Shenzhen established 4,665 foreign-invested enterprises. A large number of multinational companies have signed and completed projects in Shenzhen. Foreign investment shows strong activity. The reason behind this is that Shenzhen is continuing to relax market access, create a good business environment, and bring broad "nuggets" opportunities to foreign companies.

Data from the Shenzhen Bureau of Statistics show that in the first three quarters of this year, Shenzhen's fixed asset investment increased by 17.9%, of which infrastructure investment increased by 43.8%. The type of registration of foreign companies shows that foreign investment increased by 87.8%.

Behind the dazzling figures is the rapid growth in the number of foreign-funded enterprises in Shenzhen. An official from the Shenzhen Municipal Bureau of Commerce said that in the first three quarters, 4,665 foreign-invested enterprises were newly established in Shenzhen, and the actual use of foreign capital was RMB 39.797 billion. The high-tech industry (service industry) increased by 85.11% year-on-year; the high-tech industry (manufacturing industry) increased by 104.95% year-on-year.

Shenzhen's foreign investment shows some distinctive features. The introduction of foreign capital is mainly service-oriented. The actual use of foreign capital in the tertiary industry accounts for 88.44% of the city; Hong Kong maintains its status as a major source. New projects account for 79.42% of the city. Larger, the actual use of foreign investment in the Qianhai Shekou Free Trade Zone accounted for 56.08% of the city's total; foreign investment in large projects with contract foreign investment exceeding US $ 100 million increased by 22.79% year-on-year.

Why are foreign investors optimistic about Shenzhen's investment opportunities? Some analysts believe that, first of all, Shenzhen actively implements the national opening-up policy and continues to relax market access.

Shenzhen released a new policy of “Several Measures on Further Expanding the Scale of Utilizing Foreign Investment and Improving the Quality of Utilizing Foreign Investment (Revised Edition)” in April this year, which lowered the threshold for foreign investment entry, accurately expanded investment cooperation, strengthened financial support and land use protection, and enhanced Specific measures were put forward in terms of the quality of foreign investment development. At the same time, Shenzhen further implemented the national treatment plus negative list management model before foreign investment access. The city ’s restrictive measures for foreign investment were reduced to 40, and the Qianhai Shekou Free Trade Zone was reduced to 37.

A good business environment is an important guarantee for Shenzhen to maintain its vitality and attract foreign investment. In recent years, our city has introduced and implemented "20 Business Environment Reforms" to continuously optimize the business environment. Data show that as of the end of September this year, Shenzhen has accumulatively approved 86,690 foreign direct investment projects, accumulatively absorbed contract foreign capital of US $ 267.838 billion, and accumulated actual use of foreign capital of US $ 105.677 billion.

"These measures have greatly stimulated the vitality of the market, simplified the procedures for foreign investment, and played a significant role in promoting the use of foreign capital in our city." A person in charge of the Municipal Commerce Bureau told reporters.

Foreign-funded enterprises have deep feelings about Shenzhen's high-quality business environment, such as the Qualcomm Shenzhen Innovation Center, which was established in Shenzhen. "At the beginning of the establishment of the Innovation Center, Shenzhen's relevant departments provided a lot of support in terms of establishment, location selection and financial subsidies, which effectively reduced the center's operating costs." Said the head of Qualcomm Shenzhen Innovation Center.