During the first half of 2019, more than 7,800 new foreign direct invested enterprises were set up in Guangdong. The actual utilization of foreign investment was increased by 6 percent, reaching nearly 84 billion yuan, and that of the high-tech industry totaled over 13 billion yuan, marking an increase of 82 percent.

Investment of million-Dollar projects increases 28 percent

In spite of worldwide decreasing FDI, Guangdong has attracted many international leading companies to make new investments and expand businesses.

General Electric Company (GE), one of the Global 500, has built the first Asian biotechnology park in Guangzhou. This year, it is going to build an offshore wind turbine assembly base in Jieyang and an operation and development center in Guangzhou. It is a milestone for GE to make this investment, turning Guangdong into GE’s strategic development base in South China and Guangdong-Hong Kong-Macao Greater Bay Area (GBA), said Rachel Duan, CEO and President of International Operation of GE.

According to Guangdong government data, in the first half of 2019, more than 7,800 new foreign direct invested enterprises were established in Guangdong and the actual utilization of foreign investment reached nearly 84 billion yuan, an increase of six percent.

Also, the actual investment from developed countries in Guangdong totaled 11 billion, marking an increase of 61 percent. Investment from France, Korea and Austria were respectively increased by 43.6 times, 4.5 times and 3.3 times. In May, the German chemical company BASF started its construction of its first production devices in Zhanjiang integrated base.

FTZ attracts 40 percent FDI

According to Wang Xinxin, Vice Manager of Government Relations of TUV Rheinland in Guangdong, the company benefited from approximately 30-million-yuan tax reductions and research subsidies, gaining more capital to develop technologies and upgrade equipment.

From January to June this year, the actual utilization of foreign investment rose 12.7 percent to 80.8 billion yuan. The actual utilization of foreign investment rose 45.2 percent to 33.4 billion-yuan, accounting for 40 percent of the province, driving the total growth in Guangdong of 13 percent.

The growth also benefited from China's Foreign Investment Law. More than 99 percent of foreign-funded projects in the province have enjoyed the pre-establishment national treatment and streamlined procedures. In the Guangdong Free Trade Pilot Zone (FTZ), it takes only two procedures for a foreign-funded enterprise to complete its commercial registration.

Authors: Will, Pu Enling

Editor: Chris