Shandong bolsters cooperation with multinationals

BEIJING, Dec. 3, 2020 /PRNewswire/ -- A report from China Daily:

East China's Shandong province has been ramping up efforts to improve its local business environment in order to attract more multinationals.

The "Connecting Shandong with the Fortune Global 500" event, jointly hosted by the CPC Shandong Provincial Committee and Shandong Provincial People's Government and organized by the Shandong Provincial Department of Commerce from Aug 27 to Nov 10, was held in response to increased uncertainty in global supply chains and trade caused by the COVID-19 pandemic.

The large-scale promotional business event, consisting of five activities, aims to strengthen Shandong's ties with Fortune Global 500 companies from Europe, the Association of Southeast Asian Nations, the United States, South Korea, and Japan.

The event, attended by 59 prominent guests from 14 countries and regions, including senior government representatives, heads of international business organizations, ambassadors, business tycoons, and industry giants, has proved to be a success.

Agreements for a total of 64 projects receiving $3.7 billion in total investment and $1.19 billion in contractual foreign investment were signed during the five sessions.

The projects, involving high-end equipment manufacturing, new materials, medical care, high-end chemicals, modern services, modern finance, modern efficient agriculture, modern logistics, biotechnology, and other industries, will fuel the province's high-quality development, said local authorities.

Officials from Shandong hope to shore up post-COVID-19 confidence, further open up, and deepen cooperation with multinationals.

Liu Jiayi, Party secretary of Shandong, said that Shandong will continue pushing forward with trade and investment liberalization in order to build a more open economy, accelerate the shift of growth drivers from old to new, and treat all market entities as equals.

Liu praised the province's successful epidemic prevention and control efforts, impressive economic and social development, and said that it had been a leader in restoring economic activity since the onset of the pandemic. He encouraged more transnational corporations to invest and operate in Shandong.

Shandong Governor Li Ganjie praised the province's industrial system, investment policy, market potential, business environment, and more.

"With greater openness, Shandong will work to deepen cooperation with multinationals," said Li.

According to Zhang Deping, director of the Shandong Provincial Department of Commerce, in the past two years, Shandong has introduced 45 policies and measures to strengthen reform and opening up and build an open economic system.

Zhang said that the province has fully implemented the "pre-establishment national treatment plus negative list" management system for foreign investment, streamlined customs clearance procedures and reduced costs, and launched new business models to facilitate trade and investment.

The event has been credited with helping advance opening up and moving global trade forward.

"The event has demonstrated Shandong province's commitment to remaining open and cooperative with the world in this difficult time," said Zhan Xiaoning, director of Investment and Enterprises at the United Nations Conference on Trade and Development.

"By connecting with the world and optimizing its business environment in recent years, Shandong has created better conditions for the development of enterprises and increased investment in high value-added industries," he said.

Fumiya Kokubu, chairman at Marubeni Corp, said that the event gave him a better understanding of China's new "dual circulation" development model, as well as Shandong's determination and confidence to open up more to the outside world and welcome multinationals.

"We applaud the Shandong government's willingness to promote a higher level of opening-up, particularly through free trade zones, as well as its efforts to stabilize foreign trade and investment," said Craig Allen, president of the United States-China Business Council.

Shandong has proved itself to be a top destination for foreign investment with its ever-improving business environment, deepening reform and opening up efforts.

According to official data, last year, there were over 2,000 newly-established foreign-invested enterprises in Shandong and it attracted 62 projects from the world's top 500 enterprises, with actual use of foreign capital exceeding $14 billion for the first time.

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