Opportunities abound for multinational companies

China is providing a broad market and plenty of development opportunities for multinational enterprises, Chairman of the National Committee of the Chinese People's Political Consultative Conference Jia Qinglin told a gathering of CEOs last week in Beijing.

At the opening ceremony of the fifth International CEO Roundtable of Chinese and Foreign Multinational Corporations, Jia, who also a member of the Standing Committee of the Political Bureau of the CPC Central Committee, said the Chinese government "has made efforts to create good policies for the economy to increase stably and relatively fast".

Thirty CEOs from the world's top 500 companies, as well as more than 400 delegates of companies from both home and abroad, participated in the meeting that discussed the latest topics in the economies of both China and the world.

"China's reform and opening-up is the process of multinational companies collaborating and developing with the Chinese economy. Cooperation between multinational companies and their Chinese counterparts has been expanding and producing more profits," Jia said.

During a closed-door CEO meeting on multinationals in China on June 23, Zheng Wantong, vice-chairman of the CPPCC and chairman of the organizing committee, said China has established large-scale and completed industrial categories after 30 years of fast development.

He added that "China still has plenty of market opportunities for cooperation with multinational companies because the country's overall level is not that advanced" and needs further modernization and transformation over the long term.

A range of opportunities are available in strategic emerging industries including new energy, new materials, energy saving, environmental protection and biomedicines. Rich potential is also available in modern service industries including finance, logistics, exhibitions, technological services and business and trade services.

By the year of 2015, China's high-end equipment manufacturing industry are projected to have sales revenues surpassing 6 trillion yuan ($942.6 billion), with the environmental protection industry expected to reach 2 trillion yuan.

Over the next five years, imported service revenues are projected to surpass $1.25 trillion.

Zheng said he anticipates that multinational companies can boost bilateral cooperation to achieve more mutual benefits and play a greater role in China's industrial restructuring.

Support for foreign investment

The State Council has recently released guidelines on further implementing foreign investment that encourage foreign investment to focus on high-end manufacturing, high-tech, modern services, new energy and environmentally friendly industries.

Foreign investment is also encouraged for central and western regions rather than already flourishing coastal areas where multinational companies are concentrated and fiercely compete with each other.

The guidelines also stipulate that procedures for foreign investors in China should be simplified to cut costs and increase efficiency.

All levels of local governments have also been tasked with creating a favorable environment including supporting policies and more convenient services to better utilize foreign investment.

Jia said he hopes the meeting with its influence will make greater contributions to the world economy and the sustainable human development.

The meeting also had themed seminars on multinational companies' corporate social responsibilities, and closed-door meetings on food and medicine safety, and between CEOs from China and South Korea.