Dubai: China is working on developing its economic legal infrastructure to enhance its competitiveness among the world economies, Yuan Yue, Deputy Director General of BOFTEC in Changzhou.
“In China’s free zone concrete and clear rules and regulations have been developed to encourage investors and protect their businesses,” Yue said. He added that these regulations tackle the issue of taxation, ensure the transfer of investment profit and guarantee better process for financial transactions.
China is the world’s third largest country in terms of FDI (foreign direct investment) flows, which have increased by 70 per cent in 2013 compared to 2002, Yue said.
“The value of trade through Shanghai free zone alone amounted $300 billion in 2012. however, more should be done to upgrade China legal infrastructure,” he added.
Despite the fact that FDI inflows to the Asia-Pacific decreased by 7.3 per cent in 2012, China was the top destination for these investments, according to the Annual Investment Report which is developed by FDI Intelligence division of the Financial Times.
However, according to United Nation Conference on Trade and Development (UNCTAD), FDI inflow to China increased to $127 billion in 2013, a record level and only just behind FDI into the US.
As the largest economy in the region, China has led the world countries in the amount of Greenfield investment attracted in Asia-Pacific at $54 billion in 2013, as per the report.
