QINGDAO, China, Oct. 21, 2019 /PRNewswire/ -- The first Qingdao Multinationals Summit opened Saturday in Qingdao in Shandong Province. Themed "Multinationals and China," the summit attracted over 500 guests from 115 Global Fortune companies and 284 industry leaders. Participants highly recognize China's efforts in promoting a higher level of openness to the world and striving to achieve mutual benefit and win-win results, and they look forward to the next summit.

At the Summit, the research institute of the Ministry of Commerce released Multinationals in China: 40 Years of Investment (hereinafter referred as the Report). The Report analyzes cases from different enterprises and industries, systematically reviews the investment history of multinational companies in China.

China absorbed foreign investment of US$134.97 billion in 2018, ranking second in the world. By the end of 2018, China had established a total of 961,000 foreign-invested enterprises, and actually absorbed foreign investment of US$2.1 trillion. China has become one of the world's largest recipients of foreign investment.

The contributions of foreign-invested enterprises accounting for less than 3% of China's enterprises

Foreign investment has greatly promoted China's efforts in the reform and opening-up, and multinationals have played an important role in the process. First of all, the multinationals promoted the reform in business concepts, the transformation of government functions and the reform of the macroeconomic management system, which facilitated the establishment of an open economic system in China. Secondly, the foreign-funded economy supported by foreign investment has played an important role in the Chinese market economy, and has made important contributions in various fields including taxation, employment, technological progress, management and learning, structural upgrading, market expansion, and foreign trade. All these contributions promoted China's economic and social development and upgrading.

At present, foreign-invested enterprises account for less than 3% of the national enterprises, but contribute nearly half of foreign trade, one-quarter of industrial enterprises' output value and profits, one-fifth of tax revenue, and about 13% of employment for urban population. The foreign-invested enterprises are indispensable for China's economic development.

Foreign Investment Law will be implemented on January 1, 2020.

The State Council has issued a number of important documents and rolled out a number of measures to expand openness and optimize the environment. All levels of governments and authorities would introduce corresponding supporting policies to ensure that specific measures such as liberalization of access, fiscal and taxation support, and protection of rights and interests are put in place to create a good business environment and improve services. The new Foreign Investment Law has been adopted by the National People's Congress and will be officially implemented on January 1, 2020, which will provide better legal guarantees for foreign investment.

SOURCE Information Office of the People's Government of Shandong Province