The Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange jointly issued the Statistical Bulletin on Foreign Direct Investment in China in 2015 (hereinafter referred to as the "Bulletin"). The communique shows that in 2015, China’s foreign direct investment jumped to the second place in the world. In addition, in 2015, China’s foreign investment flow exceeded the absorption of foreign capital for the first time and became a net exporter of capital.

　　Chinese enterprises’ overseas M&A performance is eye-catching, especially non-public enterprises’ overseas M&A has surpassed public enterprises for the first time in quantity and amount. M&A industries tend to be more diversified, and the "Belt and Road" has become a new investment hotspot. The industry expects that with the deepening of the "Belt and Road" and international capacity cooperation strategy, the upsurge of overseas mergers and acquisitions of Chinese enterprises will continue.

　　Turning China into the first net exporter of capital

　　Zhang Xiangchen, deputy representative of international trade negotiations of the Ministry of Commerce, said that in 2015, China’s foreign direct investment reached a new level and achieved rapid growth for 13 consecutive years, reaching a record high of US$ 145.67 billion, accounting for 9.9% of the global traffic share, up 18.3% year-on-year, and the amount was second only to that of the United States (US$ 299.96 billion), ranking second in the world for the first time.

　　In terms of growth rate, from 2002 to 2015, the average annual growth rate of China’s foreign direct investment was as high as 35.9%, and the foreign direct investment during the Twelfth Five-Year Plan period was 539.08 billion US dollars, 2.4 times that of the Eleventh Five-Year Plan.

　　In terms of stock, by the end of 2015, 20,200 domestic investors in China had set up 30,800 foreign direct investment enterprises outside the country, distributed in 188 countries (regions) around the world; China’s foreign direct investment stock is 1,097.86 billion US dollars, accounting for 4.4% of the global foreign direct investment outflow stock from 0.4% in 2002, and its ranking has risen from 25th to 8th. At the end of 2015, the total assets of enterprises outside China reached 4.37 trillion US dollars.

　　It is worth noting that in 2015, China’s foreign investment exceeded the actual use of foreign capital (US$ 135.6 billion) in the same period, achieving a net output under capital for the first time.

　　In recent years, China’s foreign investment has maintained a rapid growth rate, ahead of the relatively stable growth rate of foreign investment absorption. Lu Jinyong, director of the Foreign Direct Investment Research Center of the University of International Business and Economics, told the Economic Information Daily that China is already a veritable international investment country, and its position in the international investment pattern has evolved from a one-way investment country to a two-way investment country. Behind this development and change is the leap of China’s overall economic strength, the promotion of enterprise competitiveness and the enhancement of technical management level.

　　In addition to the factor of "China has the ability", in Zhang Xiangchen’s view, the reason why China’s foreign investment has developed rapidly can also be attributed to: there is demand in the international market; Policies have effects; Enterprises have the motivation to "go global". He pointed out that China’s "Belt and Road" and international capacity cooperation have played a leading and promoting role. At the same time, Chinese enterprises have a strong desire to "go global" and make full use of international markets and resources to help transform and upgrade.

　　It is understood that, unlike the monthly data of foreign investment released by the Ministry of Commerce, the communique is jointly released by the three departments once a year, covering the financial industry, so the data can reflect China’s foreign investment more comprehensively and accurately.

　　Highlights The overseas M&A performance of private enterprises is eye-catching

　　According to the communique, in 2015, China enterprises carried out 579 foreign investment mergers and acquisitions, involving 62 countries and regions, with an actual transaction amount of 54.44 billion US dollars, of which direct investment was 37.28 billion US dollars, accounting for 68.5%; Overseas financing was USD 17.16 billion, accounting for 31.5%. The M&A field involved 18 major industries, including manufacturing, information transmission/software and information technology services, mining, culture/sports and entertainment. Among them, China Chemical Rubber Co., Ltd. acquired Italian Pirelli Group Company (nearly 60% of the shares) for US$ 5.29 billion, which was the largest overseas M&A project implemented by China enterprises in 2015.

　　It is worth noting that in 2015, the amount of overseas M&A by non-public enterprises accounted for 75.6% of the amount of overseas M&A in that year, surpassing the enterprises in the public economy for the first time in both quantity and amount. In addition, the leading role of the "Belt and Road" and international capacity cooperation in "going global" for Chinese enterprises is gradually emerging.

　　According to the communique, in 2015, China’s investment in countries related to the "Belt and Road" accounted for 13% of the total traffic in that year, reaching 18.93 billion US dollars, up 38.6% year-on-year, twice the growth rate of global investment. At the end of 2015, more than 80% (83.9%) of China’s foreign direct investment stock was distributed in developing economies, accounting for 14% in developed economies, and another 2.1% was in transition economies.

　　China’s foreign investment involves a wider range of fields, and the pace of international cooperation in production capacity and equipment manufacturing has accelerated. By the end of 2015, China’s foreign direct investment covered all sectors of the national economy, with manufacturing, finance, information transmission/software and information services increasing by 108.5%, 52.3% and 115.2% respectively. The investment flowing to the equipment manufacturing industry was US$ 10.05 billion, up 158.4% year-on-year, accounting for 50.3% of the manufacturing investment, which drove the equipment, technology, standards and services to "go global".

　　Wang Chunying, spokesperson of the State Administration of Foreign Exchange, pointed out that the net foreign direct investment (flow) of China’s financial industry in 2015 was US$ 24.4 billion, an increase of 26% over the previous year; By the end of 2015, the stock of foreign direct investment in China’s financial industry reached 165 billion US dollars, an increase of 30% over the end of last year. In the flow and stock of foreign direct investment in China’s financial industry, 90% is invested in overseas financial institutions, and the rest is invested in overseas non-financial enterprises.

　　The tide of overseas mergers and acquisitions of Chinese enterprises will continue

　　According to the latest data from the Ministry of Commerce, from January to August, China’s foreign investment cooperation business maintained a good development trend. Domestic investors in China made non-financial direct investments in nearly 6,000 overseas enterprises in about 160 countries and regions around the world, with a cumulative foreign direct investment of 775.12 billion yuan (equivalent to 118.06 billion US dollars), a year-on-year increase of 53.3%.

　　Among them, there are 486 overseas M&A projects, involving 16 major industries in 67 countries and regions. The actual transaction amount is 61.7 billion US dollars, which has exceeded the M&A amount of 54.44 billion US dollars in 2015.

　　Zhang Xiangchen said that the phenomenon of overseas mergers and acquisitions of Chinese enterprises has been basically normal this year. At present, the main bodies of M&A are mostly leading enterprises in domestic related industries, and these leading enterprises have the strength and conditions to carry out transnational M&A in terms of capital, technology development, talent reserve and transnational management ability. In addition, large-scale M&A projects initiated by China enterprises are on the increase. From 2013 to 2015, there were 81 large-scale mergers and acquisitions of more than $500 million.

　　The fields involved in M&A are increasingly diversified, and M&A in information technology and manufacturing has actually surpassed resources and minerals. Consumer and cultural entertainment industries are also becoming new growth points. In addition, the pace of overseas mergers and acquisitions of non-state-owned enterprises has accelerated. The mode of M&A financing is also developing in the direction of using overseas financing. In the past five years, the proportion of overseas financing in overseas M&A transactions has reached an average of 35%.

　　Gu Hongdi, co-head of M&A Department in JPMorgan Chase Asia Pacific, said, "China’s foreign M&A in 2016 may hit a new historical high. From the activity of the overall transaction and our communication with customers, we can know that there will still be large-scale transactions in the second half of this year. "

　　Lu Jinyong, a professor at the School of International Business and Economics of the University of International Business and Economics, said that it is expected that China’s net foreign investment in stock will be realized during the 14 th Five-Year Plan period. On the basis of consolidating its existing position, China will continue to move forward on the road of becoming an international investment power, and gradually move towards becoming an international investment power.

　　However, Zhang Xiangchen also admitted that in the process of the rapid expansion of the number and scale of overseas mergers and acquisitions, there are also some problems: for example, mergers and acquisitions are blind and lack of full argumentation; A few enterprises face high debt financial risks in overseas mergers and acquisitions, and the loan investment ratio is too high to bear high leverage risks; The interference of foreign security review increases the risk and uncertainty of Chinese enterprises’ overseas mergers and acquisitions.

　　Reporter Sun Shaohua

Announcement No.93, 2018 of the General Administration of Customs (Announcement on matters related to the adjustment of water and air inbound and outbound means of transport and cargo manifest management)
Announcement [2018] No.93

On May 29, 2018, the General Administration of Customs promulgated the Decision of the General Administration of Customs on Amending Some Regulations (Order No.240 of the General Administration of Customs), which revised the relevant provisions of the Measures for the Supervision of Inbound and Outbound Means of Transport of People’s Republic of China (PRC) Customs and the Measures for the Administration of Inbound and Outbound Means of Transport Manifests of People’s Republic of China (PRC) Customs (hereinafter referred to as the "Manifest Measures"). The relevant matters concerning the management of water and air inbound and outbound means of transport and cargo manifests are hereby announced as follows:

First, the "general bill of lading" and "sub-bill of lading" mentioned in the second paragraph of Article 2 of the Manifest Measures refer to the general bill of lading and sub-bill of lading for ship transportation. The master bill of lading refers to the bill of lading issued by the person in charge of the means of transport and the shipping agency (that is, MASTER B/L), and the sub-bill of lading refers to the bill of lading issued by the non-vessel shipping operator (that is, HOUSE B/L) under the master bill of lading.

Second, about filing

(a) domestic enterprises without qualifications for the record.

A domestic shipping enterprise that cannot be qualified as a person shall entrust a domestic shipping agency that has been filed with the customs to transmit the manifest to the customs.

(2) Filing of branches.

Where the manifest transmitter has a branch in China, the branch shall record the address, contact person and telephone number of the branch at the customs directly under the place where it operates or its authorized subordinate customs.

Three, transit, transshipment and through cargo information transmission

(1) Transmitters of transit goods, manifests and related electronic data shall transmit inbound and outbound manifests and related electronic data in accordance with the Manifest Measures.

(2) For transshipment goods, the manifest transmitter shall transmit electronic data such as original manifest, pre-allocated manifest, loaded manifest and tally report to the customs in accordance with the provisions of the Manifest Measures.

(3) The transmitter of goods, manifests and related electronic data will not transmit manifests and related electronic data for the time being.

4. The enterprise responsible for transmitting electronic data shall transmit the electronic data of the means of transport and manifests to the customs in strict accordance with the relevant regulations of the General Administration of Customs and the Provisions of the General Administration of Customs on the Time Limit for Declaring and Transmitting the Manifests of Inbound and Outbound Means of Transport and Goods and Articles Carried by Water and Air (see Annex).

5. If the export goods are shipped while arriving, the goods shall be deemed to have arrived after the actual inspection by the customs, and the arrival report shall be transmitted to the customs. After the arrival report is transmitted, the goods and articles shall be loaded within 3 days.

Six, the same ship carrying container goods and non container goods into the country, the manifest transmitter shall be in accordance with the "Manifest Measures" Article 9 (a) of the container ship and non container ship transmission time limit respectively transmit the original manifest data.

7. The manifest transmitter shall transmit and allocate the electronic data of inbound and outbound empty containers to the customs; If the empty container is not actually loaded and unloaded according to the submitted data, the manifest transmitter shall go through the formalities for changing the electronic data of the empty container in accordance with relevant regulations.

Eight, this announcement shall come into force as of the date of promulgation. Announcement No.97 and No.101 of the General Administration of Customs in 2008 shall be abolished at the same time.

It is hereby announced.

Annex: Provisions of the General Administration of Customs on the time limit for declaration and transmission of water, air, inbound and outbound means of transport and manifests of goods and articles they carry.

General Administration of Customs
July 13, 2018

attachment

Provisions of the General Administration of Customs on the time limit for declaration and transmission of water, air and inbound means of transport and manifests of goods and articles carried by them

1. Inbound and outbound ships (including small ships travelling between Hong Kong and Macao) and manifests of their cargo and articles.

(1) The person in charge of the inbound and outbound ships shall declare the dynamics of the means of transport to the customs in the form of electronic data within the following time limits:

1. Forecast dynamics.

Inbound and outbound ships carrying goods and articles shall transmit the main data of the original manifest or the pre-allocated manifest before;

An inbound or outbound ship without cargo or articles shall, before its arrival or departure from Hong Kong.

2. report the dynamics.

The entry report shall be made before the entry ship arrives in Hong Kong;

The dynamic report of exit shall be made when the exit ship leaves.

3. Arrival report.

When the inbound ship arrives at the anchorage or berths directly;

There is no (no) arrival report for outbound ships.

4. The electronic data of People’s Republic of China (PRC) Customs Ship Entry (Port) Declaration Form, when the entry ship reaches the anchorage or directly berths;

Electronic data of People’s Republic of China (PRC) Customs Ship Exit (Port) Declaration Form, when the exit ship leaves the anchorage or directly leaves the berth.

(2) The manifest transmitter shall transmit the electronic data of the manifest of import and export goods and articles to the customs in the form of electronic data within the following time limits:

1. For inbound container ships, 24 hours before the goods and articles start to be loaded; Container goods and articles transshipped through overseas ports shall be loaded 24 hours before the last overseas transshipment port.

For outbound container ships, 24 hours before the goods and articles are loaded.

2. Entry non-container ships, 24 hours before their arrival at the first domestic destination port; Within 24 hours, before arriving at the first destination port in China.

Non-container ships leaving the country, 2 hours before starting to load goods and articles.

3. If the inbound ship is loaded with containers, non-container goods and articles at the same time, it shall be transmitted separately according to Items 1 and 2;

If the outbound ship is loaded with containers, non-container goods and articles at the same time, it shall be transmitted separately in accordance with Items 1 and 2.

4 inbound passenger and cargo liner (voyage less than 24 hours), 2 hours before the start of loading goods and articles;

Outbound passenger and cargo liner, 2 hours before the start of loading goods and articles.

5. Other short-distance ships entering the country (the voyage is less than 24 hours), 4 hours before the start of loading goods and articles;

Other short-distance ships leaving the country (the voyage is less than 24 hours), 4 hours before the start of loading goods and articles.

6. Transfer the inbound empty containers before the ship arrives at the port of destination;

Empty containers transferred out of the country shall be shipped 2 hours before the empty containers are loaded.

7. When goods and articles are transshipped in domestic ports, they shall be transported before the entry ship arrives at the port of discharge;

Goods and articles that are transshipped out of the country shall be transshipped out of the country 2 hours before loading.

Two, inbound and outbound aircraft and their cargo and articles manifest

(1) The person in charge of the inbound and outbound aircraft shall declare the dynamics of the means of transport to the customs in the form of electronic data within the following time limits:

1. The inbound "flight plan of the same day" is before 0: 00 on the day when the aircraft is expected to arrive at the first destination port in China;

The outbound "flight plan for the same day" is before 0: 00 on the day when the aircraft is expected to leave the port of departure.

2. If the inbound voyage exceeds 4 hours, the "forecast dynamics" shall be 4 hours before the aircraft arrives at the first domestic destination port; If the inbound voyage is less than 4 hours, the "forecast dynamics" will be at the time of aircraft take-off;

The exit "forecast dynamics" is two hours before the aircraft leaves the place where the customs is set up.

3. The entry "reported dynamics" is within 30 minutes after the aircraft arrives at the first domestic destination port;

The "dynamic report" of exit is within 30 minutes after the aircraft leaves the place where the customs is set up.

4. The electronic data of the General Declaration Form for Aircraft Entry (Port) of People’s Republic of China (PRC) Customs shall be within 30 minutes after the entry aircraft arrives at the first destination port in China;

The electronic data of "People’s Republic of China (PRC) Customs Aircraft Exit (Port) General Declaration Form" shall be within 30 minutes before the exit aircraft leaves the place where the customs is established.

5. The inbound and outbound "flight cancellation" is sent after the "flight plan of the day" and before the "dynamic report".

(2) The manifest transmitter shall transmit the electronic data of the manifest of import and export goods and articles to the customs in the form of electronic data within the following time limits:

If the entry voyage is less than 4 hours, before the aircraft takes off; If the voyage exceeds 4 hours, 4 hours before the aircraft arrives at the first destination port in China.

4 hours before the departure aircraft starts loading goods and articles.

　　Building a new security pattern is a major strategic deployment made by the CPC Central Committee with the Supreme Leader as the core, from the strategic height of adhering to and developing Socialism with Chinese characteristics, and sizing up the situation to answer how the new era and new journey can not only solve the common security problems faced in the development process of great powers, but also deal with the special security problems faced at the critical stage of the great rejuvenation of the Chinese nation, which has great political, theoretical, practical and world significance.

　　The picture shows the theme poster of the National Security Education Day on April 15th, 2023. Photo courtesy of the Ministry of National Security

　　Political significance

　　Building a new security pattern highlights the great political significance of upholding the Party’s absolute leadership over national security work and taking the road of national security with China characteristics.

　　General Secretary of the Supreme Leader pointed out that the Communist Party of China (CPC)’s leadership is the most essential feature of Socialism with Chinese characteristics, the greatest advantage of the Socialism with Chinese characteristics system, and the root and lifeblood of the party and the country.

　　In the new era and new journey, to build a new security pattern, we must always uphold the absolute leadership of the Party over national security work, adhere to the centralized and unified leadership of the CPC Central Committee over national security work, give full play to the core role of the Party in taking the overall situation and coordinating all parties in the national security practice with China characteristics, ensure that the Party’s leadership and China’s socialist system remain unshakable, and ensure that the national security road with China characteristics is getting wider and wider.

　　Theoretical significance

　　Building a new security pattern highlights the great theoretical significance of implementing the overall national security concept and constantly opening up a new realm of Marxist national security theory.

　　General Secretary of the Supreme Leader stressed that we must unswervingly implement the overall national security concept, improve the national security system, enhance the ability to safeguard national security, improve the level of public security governance, and improve the social governance system. This is the meaning of building a new security pattern, which implies that we should adhere to the principle of people’s security, take political security as the foundation, take economic security as the foundation, take military science, technology, culture and social security as the guarantee, and rely on promoting international security, coordinate external security and internal security, homeland security and national security, traditional security and non-traditional security, self-security and common security, coordinate and shape national security, consolidate the grassroots foundation of national security and social stability, and improve the mechanism of participating in global security governance.

　　Building a new security pattern has further expanded and sublimated the regular understanding of national security work in the new era and further enriched and developed Marxist national security theory.

　　Practical significance

　　Building a new security pattern highlights the great practical significance of promoting Chinese modernization and realizing the great rejuvenation of the Chinese nation.

　　The 20th National Congress of the Communist Party of China drew a grand blueprint for building a socialist modern country in an all-round way and promoting the great rejuvenation of the Chinese nation in an all-round way with Chinese modernization.

　　At present, China’s development stands at a new historical starting point, the external environment and security pattern have undergone major changes, and all kinds of predictable and unpredictable risks, challenges, difficulties and even stormy waves have put forward higher requirements for national security work.

　　Only by accelerating the construction of a new security pattern and firmly holding the bottom line of safe development can we build development on a safer and more reliable basis; Only by ensuring development with safety and promoting safety with development can the new security pattern and the new development pattern be promoted together; Only in this way can we ensure that the great rejuvenation of the Chinese nation will not be delayed or even interrupted, and that Chinese modernization will be stable and far-reaching.

　　World significance

　　Building a new security pattern highlights the great world significance of persisting in promoting international common security and building a community of human destiny.

　　In today’s world, the linkage, transnationality and diversity of security issues are more prominent. China’s national security is inseparable from the international security situation. We should not only do our own national security work well, but also promote international security.

　　To build a new security pattern, we should proceed from the basic principles of Marxist national security theory such as "security is indivisible" and security community, abandon the old concepts such as "national power must dominate", zero-sum game, absolute security and alliance confrontation, and promote the construction of a community of human destiny.

　　Building a new security pattern points out the direction of coping with global challenges and moving towards a brighter future, marks the new progress of human national security governance, and provides important reference for those countries that want to maintain social security and stability as well as their own independence.

　　For more exciting contents, see: Chen Yixin’s "Deeply Studying and Implementing the Spirit of the 20th Party Congress and Accelerating the Construction of a New Security Pattern"

　　(Planning: Liu Mingmei Audit: Li Yanling)