Depth report

　　

The latest report "World Investment Policy Monitor (No. 19)" released by the United Nations Conference on Trade and Development (UNCTAD) shows that since November 2017, in terms of national investment policies, world investment has continued to show promotion, liberalization and Facilitation trends, but there are also some countries that raise the barriers to entry for foreign capital and attach many restricted areas and conditions. The two opposite tendencies of investment and trade policies, liberalism and protectionism, are intertwined and coexist.

    At present, encouraging and promoting investment is still the mainstream trend in the field of international investment. Many countries have relaxed restrictions on foreign investment and adopted many encouragement and promotion measures to further promote the degree of investment liberalization. For example, Indonesia has replaced the licensing procedures for commercial establishments with investment registration procedures, which further simplifies the entry of foreign capital. Laos has abolished the minimum registered capital requirement for foreign investors. Myanmar passed a new company law to encourage foreign investors to increase their holdings in domestic companies. Ukraine passed a bill on privatization of public property to make the privatization process more transparent and faster. Vietnam has implemented new privatization measures aimed at encouraging foreign investment in state-owned enterprises. Zimbabwe has lowered the threshold for foreign investment in industries other than diamonds and platinum. Argentina, the Philippines, and Tanzania have simplified the administrative approval procedures for foreign investment. The U.S. implemented tax reforms and significantly reduced corporate income tax rates. At the same time, some countries are striving to carry out consultations on the formulation of a multilateral framework for investment facilitation within the framework of the World Trade Organization (WTO).

 From the perspective of national conditions, most of the new investment policies and measures continue to focus on creating more favorable investment conditions and improving the business environment, as well as promoting the liberalization, promotion and facilitation of investment in retail trade, energy and transportation industries. Measures.

    With regard to the reform and development of international investment, developing countries and transition economies have taken the lead. Some of these countries have implemented new policies and measures to encourage and protect foreign investors’ entry, including relaxing the restrictions on foreign investors’ holding of equity in domestic enterprises. Restrictions, and actively provide business opportunities for foreign investors. In terms of promoting foreign investment, 14 countries including Argentina, China, India, Indonesia, Myanmar, Peru, the Philippines, Qatar, Saudi Arabia, Thailand, Tanzania, the United States, Venezuela, and Vietnam have performed outstandingly. They have all adopted investment incentives and simplified investment approvals. Procedures and tax cuts and other measures. For example, the Philippines launched the "Philippines Commercial Data Bank" digital platform, which shortened the time required for foreign investors to apply for and renew licenses. Qatar has revised its free trade zone investment law to provide investors with incentives such as exemption of export and import tariffs.

    Nevertheless, the phenomenon of increasing restrictions on foreign investment or raising the threshold is still more obvious. In some countries, there is even a tendency to become stricter, and more restrictive or regulatory investment policies and measures have greatly increased. This is mainly out of concerns that foreign capital may control the country's key industries, infrastructure, and land ownership, as well as considerations such as protecting the competitiveness of domestic enterprises and producers. Since 2017, 22 countries have implemented foreign investment restriction policies or measures, and their investment liberalization, promotion and facilitation have all declined. Among them, Australia and New Zealand have strengthened investment screening, screening procedures and restrictions on some sectors and industries in their countries. Lithuania has implemented foreign investment restrictions on certain sectors, industries and regions of the country by amending relevant laws. New Zealand and the United States have rejected several major acquisitions by foreign companies.