Further opening up of manufacturing to promote global growth

Process of upgrading opening-up continues

In recent years, the focus of foreign investment has been gradually moving from processing and manufacturing to high-tech fields such as computers, integrated circuits and smart manufacturing.

Nearly 2,000 multinational companies have set up their regional headquarters or research and development centers in China. For instance, Dassault Systems and its Chinese partner have agreed to establish a Sino-French joint industry innovation center. They will strengthen cooperation in dynamic simulation, additive manufacturing and multi-robot advanced manufacturing to develop an incubation platform for future innovative manufacturing technologies.

The actual use of foreign investment in high-tech manufacturing was$66.59 billion in 2017, up 11.3 percent year-on-year, of which the growth rates for such sectors as electronics and communications equipment, computers and office equipment, and medical equipment and instruments were 7.9 percent, 71.1 percent and 28 percent, respectively. The scale and level of overseas investment by Chinese enterprises are also seeing rapid increase.

In 2012, Chinese direct investment in the United States exceeded, for the first time, US investments in China. In 2016, China's direct investment in the US reached $16.98 billion, up 111.5 percent year-on-year. And Xuzhou Construction Machinery Group, Zoomlion, Sany and Liu-Gong Group, which are among the world's top 20 engineering machinery manufacturers, as well as other Chinese companies have set up R&D centers in Europe.

Cooperative systems being normalized

Thanks to the implementation of the Made in China 2025 plan, China has enhanced synergies in manufacturing development strategies and promoted cooperation with Germany, France and other countries through multilateral or bilateral mechanisms. The exchanges and cooperation, among others areas, cover strategy coordination, standardization and development of industrial parks.

In fact, a number of financial cooperation mechanisms have been in place to promote bilateral cooperation in manufacturing, including China-ASEAN Investment Cooperation Fund, China-Latin America Production Capacity Cooperation Investment Fund, China-EU Joint Investment Fund, China-Mexico Investment Fund, and China-France Fund for Joint Cooperation with Third-Party Markets.

Besides, Sino-US and Sino-German cooperation on smart manufacturing and Industrial Internet is deepening. For example, General Electric Company is cooperating with Chinese companies on Industrial Internet technologies and standardization. Another example is that, by focusing on smart manufacturing, standardization, talents development, demonstration parks, China and Germany have launched pilot projects for cooperation on intelligent manufacturing and production process networking so as to learn from each other and achieve mutual benefit through new ways of cooperation.

The level of reciprocity continues to improve

While benefiting from the inflow of foreign capital, technologies and talents, China's manufacturing sector has also continuously generated favorable economic returns for foreign companies. In 2017, a total of 24.72 million passenger vehicles were sold in China, of which German, Japanese, US, South Korean and French brands accounted for 19.6 percent, 17.0 percent, 12.3 percent, 4.6 percent and 1.8 percent of the total sales volume, respectively.

By investing overseas, Chinese manufacturing companies have also brought funds, technologies and products to the target countries and thus contributed to the development of the local economy, by creating jobs and paying tax, producing a win-win result.

By the end of 2017, Chinese companies' accumulated investment in overseas trade cooperative zones was$30.7 billion, which generated$2.42 billion in tax and fees, and created 258,000 local jobs for the host countries. A report released by the National Committee on US-China Relations shows Chinese companies employed more than 140,000 American workers in Ohio, which not only generated tax income and created jobs, but also helped improve local public infrastructure. This prompted even the Wall Street Journal to refer to Chinese investment as helpful for reviving the Rust Belt cities in the US.

The 40 years of reform and opening-up have vigorously promoted the rapid development of China's manufacturing sector, supported the sustainable and rapid growth of the Chinese economy, and contributed significantly to the steady growth of the global economy. According to the World Economic Situation and Prospects 2018 report published by the United Nations, global economic growth is estimated to have reached 3 percent in 2017 with the Chinese economy contributing about one-third to that growth.