Exchange Rate Change Does Not Mean Foreign Trade Policy Orientation.

RMB appreciation is good for foreign investment but not conducive to foreign investment.

In November 1st, at a news conference held by the Information Office of the State Council, Chen Jian, Vice Minister of Commerce, responded to the question raised by reporters. He said, from the general economic theory, the appreciation of RMB is conducive to Chinese enterprises' foreign investment, but at the same time, it will have a negative impact on China's exports.

Exchange rate movements do not represent the orientation of China's foreign trade policy.

At the meeting, Chen Jian also introduced the situation of China's foreign investment cooperation, and issued the "China foreign investment cooperation development report 2010" (hereinafter referred to as the "report") and the "guide to foreign investment countries (regions)" (2010 Edition).

Chen Jian said that as of the end of 2009, 1.2 000 domestic investors in China had set up 1.3 overseas direct investment enterprises overseas, which were distributed in 177 countries and regions in the world. The total assets investment of overseas enterprises exceeded 1 trillion US dollars, and the total net foreign direct investment amounted to 245 billion 750 million US dollars, ranking fifteenth in the world and third in developing economies.

In 2009, China's foreign direct investment volume reached US $56 billion 500 million, ranking fifth in the world, ranking first in developing countries.

Huo Jianguo, director of the Research Institute of the Ministry of Commerce, explained to the daily economic news reporter that the report introduced the development and problems of China's foreign investment on the one hand, and provided some important information for domestic enterprises to better grasp the situation of different countries and regions. On the other hand, it also issued the guide to foreign investment in countries (regions) (2010 Edition), and introduced 165 countries and regions in detail, including the introduction of different countries' economic, political, folk and business environment.

Its concept embodies the principle of "mutual benefit and win-win".

Huo Jianguo said that many investments in China are now confined to the low-end foreign economic cooperation and contracting projects. The proportion of investment to developing countries is relatively large, and the proportion of investment to the US and Europe is still very small.

He suggested that in addition to continue to play the role of low-end economic cooperation and foreign contracted projects in the future, in the appropriate countries and regions, we should increase the proportion of cooperation and investment in manufacturing industry, and at the same time, we should step up efforts in the field of total circulation and sales.

He said that in 2010, the most severe year for trade barriers in developed countries was also the largest floating year of currency value, and the most active year for increasing tariffs.

For the Chinese enterprises that are always in the low end of the investment value chain, they have always been in the situation of "high cost" going out and earning small profits.

How to get rid of this unfavorable situation is, on the one hand, that the enterprises themselves should increase the technological content of the added value of the products, and on the other hand, the government departments should also give more effective support.

However, Huo Jianguo reminded us that in the future, foreign investment of domestic enterprises should adopt two different guiding principles. In terms of specific operations, we should emphasize risk control for large enterprises and large projects, while small and medium-sized enterprises should provide some more convenient measures, such as foreign investment procedures, foreign exchange, investment products import and export, and other aspects.

Only in this way can foreign investment be beneficial to enterprises.