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CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE ON PROHIBITING ASSIGNING QUOTA OF INVITING INVESTMENT TO SUBORDINATE GOVERNMENTS AND LINKING UP THEIR PERFORMANCE WITH THE QUOTA COMPLETION

Circular of the General Office of the Ministry of Commerce on Prohibiting Assigning Quota of Inviting Investment to Subordinate Governments and Linking Up Their Performance with the Quota Completion

The competent departments of commerce in all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps:

Currently, the work of absorbing foreign investment has entered a new stage in China and great progress has been achieved in making the investment invitation more scientific and standardized. Local governments and the competent departments of investment invitation at various levels have made their contributions to inviting foreign investment by committing themselves to the work and providing good service for foreign investors in China. However, there still remain some unreasonable emphases in invitation instead of in administration and in scale instead of in quality. Some local governments have attached undue importance to the quantity of foreign investment and simply assigned "inflexible quota" to their subordinate, regardless of the quality, or they may even link up the quantity of foreign investment invited with the assessment of the cadres' achievements and their salaries and bonuses, which will not only interfere in the normal operation of the government, but also serve as the hotbed of untruthful reports of figures and irrational and malign competitions between different regions, and undermine the uniformity and seriousness of the national policies and laws. It runs counter to the requirements of the scientific outlook on development and will do harm to the quality and level of the absorbed foreign investment. For the purpose of checking this trend and raise the quality and level of the absorbed foreign investment, it is hereby notified:

I.

The scientific outlook on development shall be strictly followed and it is prohibited to assign quota of inviting investment to subordinate governments and linking up their performance with the quota completion. China's main competitiveness in absorbing foreign investment lies in the long-term steady growth of national economy, political stability, improvement of people's livelihood, huge market potential and constantly improving investment environment. Local governments and institutions at various levels shall unswervingly implement the principles of the State Council and prevent and put an end to all practices of assigning quota to the subordinate departments and appraising their performance with the quota completion as the only indicator. Meanwhile, emphasis should be laid on improving the investment environment and raising the quality of service, with a view to further optimizing the foreign investment mix and accelerating the shift of foreign investment absorption to a growth mode which stresses quality and efficiency. In the future, the Ministry of Commerce will intensify its supervision over the local authorities and conduct a regular inspection for the aforementioned phenomena as well as that of mobilizing everyone to attract investment; in serious cases, a notice of criticism shall be circulated.

II.

The Ministry of Commerce shall strengthen the guidance to the formulation and implementation of investment promoting strategy of local governments, adopt scientific policies, innovate the working methods and measures and boost the investment promoting efficiency, in accordance with the objectives of the state macro-economic development and the reality of economic development and industrial distribution. The Ministry of Commerce will provide technical support for the less developed areas in Central-Western Region in image-building, programme introduction and recommendation, information exchange and personnel training through "the Assistance Centre of Investment Promoting for Less-Developed Areas" so as to improve the investment promoting work in these areas.

III.

The Ministry of Commerce will cooperate with relevant institutions and conduct an appraisal of local investment environment and performance of the local authorities in investment promoting, with a view to constantly improving the investment environment and raising the level of investment promoting.

General Office of the Ministry of Commerce

February 2, 2007

  General Office of the Ministry of Commerce 2007-02-02  


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