China vows to get foreign firms’ pricey mega projects under way as FDI outflow persists
- From toy giant Lego to drug maker Moderna, China is trying to speed up their economy-driving initiatives such as massive factories and R&D centres
To get foreign-invested mega projects off the ground quickly at a time when China’s economy needs a jolt of life, commerce authorities assembled representatives of 20 such projects – including by major pharmaceutical firms and the world’s biggest toymaker by revenue – for a round-table chat to address concerns and get the ball rolling.
The rare meeting on Wednesday came as Beijing amps up efforts to arrest a decline in foreign investment, and authorities are keen on empowering global giants to proceed with economy-driving projects that boast planned investments of up to €10 billion (US$11 billion).
“The Ministry of Commerce will take a task-force approach for these focal projects by increasing efficiency and protection,” it vowed in a statement. “[We] will also resolve problems – such as approvals, land use, environmental assessments, energy consumption, and financing – in a timely manner.”
“We’ll push ahead with the early signing of projects under negotiation, the early commencement of signed projects, and the early completion of projects under construction, so as to provide strong support to attract and utilise foreign investment in a more vigorous manner.”
According to analysts, the programmatic approach could help China pull in additional foreign direct investment, as the latest data from the State Administration of Foreign Exchange released on Friday showed a net FDI outflow of US$14.8 billion for the second quarter.
