Foreign capital enters emerging industries and receives policy support

Recently, at the 2011 China-Japan Green Expo, relevant parties in Japan organized a luxury company lineup to participate in the Beijing exhibition.

Vice President of Sanyo Electric Co., Ltd., the vice president of the company, proposed the concept of “renewable energy and distributed storage system” to address the imbalance of power supply and demand caused by post-disaster reconstruction and nuclear power plant accidents in Japan.

“We have seen that the Chinese government is actively advocating strategic emerging industries. We want to use our own technology to cooperate with Chinese companies.”

In line with the idea of ​​foreign investment in eagerness for cooperation, a number of ministries and commissions, including the National Development and Reform Commission, are formulating series of rules in terms of industry guidance, technology, and intellectual property cooperation to provide a comprehensive institutional framework for multinational corporations to participate in the development of China's strategic emerging industries.

“The policy framework formulated by various ministries and commissions has been issued for different periods, but it will be announced before the end of the year.” According to a source from the High-tech Division of the National Development and Reform Commission, the reporter told reporters.

The National Development and Reform Commission and other departments will improve the newly revised Catalogue for the Guidance of Foreign Investment Industries (hereinafter referred to as the “Catalogue”). Compared with the previous version, the Catalogue will highlight the support of foreign investors in strategic emerging industries.

"Compared with the "Foreign Investment Industry Guidance Catalogue" (2007 Revision), the current manuscript adds a number of projects related to strategic emerging industries in the encouraged category," the relevant person from the National Development and Reform Commission told reporters.

According to reports, the Catalogue has increased the research, development and manufacture of aviation, aerospace, automotive, and environmental protection materials in the metal products industry. In the special equipment manufacturing industry, the design and manufacture of automotive battery-specific production equipment have increased; In the transportation equipment manufacturing industry, key components for new energy vehicles have been added; in the electrical machinery and equipment manufacturing industry, high-tech green battery manufacturing has been added; in the communication equipment manufacturing industry, the next-generation Internet system equipment based on PIv6 has been added. Terminal equipment, monitoring equipment, software, chip development and manufacturing; in the production and supply of electricity, gas and water, increased the construction and operation of reclaimed water plants, and the construction and operation of motor vehicle charging stations and battery replacement stations.

“The Ministry of Science and Technology will continue to encourage multinational corporations to set up R&D centers in China and support multinational corporations to use R&D platforms in strategic emerging industries to develop technological breakthroughs with Chinese companies,” said Minister of Science and Technology Wan Gang in an interview with reporters recently.

According to reports, in the next phase, the relevant departments will formulate rules such as the “Guidelines for Technical Cooperation among Multinational Companies” to promote cooperation plans between Chinese companies and large multinational companies, and encourage multinational companies to establish regional headquarters, R&D centers, procurement centers, and training at the bases. The center encourages foreign-funded enterprises to innovate in technology, enhance supporting capabilities, and extend the industrial chain.

Wang Zhile, a research fellow at the Ministry of Commerce, told reporters that encouraging foreign investment to enter strategic emerging industries and modern service industries is in line with China’s industrial upgrading and is conducive to China’s industrial restructuring. The relevant person of the Ministry of Commerce stated that apart from encouraging foreign investment in strategic emerging industries, the modern service industry is also an area where the state encourages foreign investment. In the leasing and business services industries, venture capital companies and intellectual property services have been included in the scope of incentives.

The Ministry of Industry and Information Technology and the Intellectual Property Office are jointly brewing relevant regulations to encourage Chinese companies and multinational corporations to cooperate in intellectual property rights in strategic emerging industries.

"China should vigorously strengthen the analysis of patents for strategic emerging industries, select technical breakthroughs and strengthen cooperation with multinational companies in intellectual property rights," said Han Jun, deputy director of the Department of Science and Technology of the Ministry of Industry and Information Technology. The mutual reference of technologies and cross-licensing have become commonplace. Rules, self-innovation behind closed doors may not be able to find clues, or fall into someone else's trap. The state must vigorously carry out patent analysis of strategic emerging industries, strive to discover breakthroughs in technology, realize the introduction, digestion and absorption, and re-innovation, and then carry out targeted technological innovation and patent distribution work.

The ministry's policy signal triggered local positive actions.

Recently, Jiangxi Province held a strategic new industry development and cooperation promotion meeting in Beijing. It is a 196 strategic emerging industry investment projects with a total investment of more than 130 billion yuan, and China’s leading companies in aerospace, aviation, energy, and non-ferrous metals, and transnational corporations. The company's investment promotion negotiations are aimed at introducing a number of major projects, high-end talents and advanced technologies, and accelerating industrial restructuring. Chongqing and other places are also in the recently announced strategic emerging industries planning, which has introduced the introduction of multinational companies to investment and encourage foreign technology cooperation as an important part.

Multinational corporations are implementing new strategic arrangements centering on China’s structural adjustment. Multinational corporations are fully involved in a new cycle of Chinese economy in terms of industry direction, technological upgrading, and regional selection.

A number of foreign investment associations in China, such as the US-China Chamber of Commerce, have stated that many domestic multinational companies have recently learned about China’s strategic emerging industries’ investment policies and opportunities through various means, and some have already quietly acted.

“We hope to learn more about some policy information and look forward to participating more and more in the emerging industries that China is about to develop. This is a great opportunity for transnational investors.” Hitachi (China) Co., Ltd. Chairman Nono representative said. Recently, Hitachi has just concluded a memorandum of cooperation on environmental protection and energy conservation with the National Development and Reform Commission, and has also started cooperation with the Chinese government and enterprises in energy conservation and environmental protection in Tianjin and other places.

Experts said that Chinese companies must look at the new investment trends of multinational companies, actively cooperate with them, and develop strategic emerging industries. For example, Chinese companies can cooperate with multinational companies in the promotion and application of certain localization technologies, and then use the platforms of multinational companies to jointly develop international markets. This will become a shortcut for Chinese companies to improve their technology and “go global”. .

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