In 2020, Xiamen’s utilized foreign investment totaled RMB 16.6 billion, posting a 23.8% increase year-on-year, 13.5 percentage points higher than the province’s overall growth rate. The amount represented 47.7% of the province’s total. For the full year, Xiamen’s utilized foreign investment and the growth rate thereof were both the highest in the province and were both record highs.  

Highlights 

Service Industry Becomes a Bright Spot in Investment Absorption 

Large-scale Projects Turn out to Be Strong Drivers of Growth 

In terms of the economic sectors, service emerged as a new hot destination for foreign investment. According to statistics, last year, 940 new service enterprises were established in Xiamen, accounting for 95.2% of the city’s total. The actual value of utilized foreign investment in the service sector leaped by 54.4% to reach RMB 10.82 billion, representing 65.2% of the city’s total, an increase of 13 percentage points year-on-year. In the service sector, utilized foreign investment was concentrated in leasing and business services, hotels and restaurants, and retail and wholesale, with the R&D and design services of the high-tech service industry experiencing a 130% growth. The investment projects launched by the newly introduced Jinyuan President Securities, Tuya Tech and Blue Earth Tourism Development contributed to the continuous improvement of the quality of the service industry. 

Large-scale projects have proved to be strong drivers of growth. In 2020, there were 35 new projects each exceeding USD 10 million in utilized foreign investment, and the cumulative total amount surged by 23.4% to reach USD 2.22 billion. These projects accounted for 92.1% of the city’s total and contributed 21.3 percentage points to the city’s overall growth rate of utilized foreign investment. The quality of foreign investment projects has risen steadily, and the execution of high-priority projects is speeding up. 

Foreign investors have regained their confidence. The execution of the Phase 3 project of Nippon Electric Glass (NEG) has started, and talks on the Phase 4 project is are underway. At the 3rd China International Import Expo, Admiral Overseas Corporation (AOC) announced plans to invest another USD 150 million in its Xiamen facility. NEG has expressed its appreciation for the assistance that it has received from Xiamen Commerce Bureau in securing pandemic prevention supplies and resuming production. The company also received meticulous consulting on the procedures of investment increase and actualization, which boosted the company’s confidence in increasing investment and expanding production. NEG’s Phase 3 project is a major production expansion project in the new-style display industry. Set to begin operation in the middle of 2021, the project is expected to further optimize and upgrade the upstream products of the flat-panel display industry. 

Policy

Multi-channel Approach and Full Coverage Implemented 

Business Environment Continues to Optimize 

Despite the pandemic and complex global situation, Xiamen has built a first-rate business environment to support the long-term positioning of the industries and to maintain the efficient operations of enterprises. With its superb ecological environment for living and broad market demand, Xiamen sustains the development of projects and provides global investors with abundant resources and a vast business arena. 

In 2020, Xiamen actively carried out incentive policies for foreign investment and fully implemented the Foreign Investment Law and its supporting measures. The city also introduced an action plan to facilitate foreign investment and stepped up efforts to draw investment to the newly opened sectors. In the newly opened sectors, such as aviation, finance and culture, several renowned companies, including France’s Bolloré Aviation Materials and Jinyuan President Securities, were brought in. City officials also guided FIEs to take full advantage of preferential policy measures, and gave rewards totaling RMB 804.15 billion to FIEs. 

Innovative practices were introduced to promote investment and attract foreign investment. “Cloud Investment Promotion” and online services were launched, and several cloud agreement-signing events were organized. As a result, agreements were clinched on 29 foreign investment projects involving RMB 32.8 billion in foreign capital. This experience was promoted across the province as a classic example. 

Investment promotion channels have been further expanded. City officials took advantage of the 2020 China International Fair for Investment and Trade in Xiamen, the 3rd China International Import Expo and other investment promotion platforms to strengthen ties with international organizations, well-known business associations, investment intermediaries and alumni associations. Moreover, city officials actively promoted foreign investment policies and regulations through the Investment Promotion Map, the Chinese-English bilingual “Invest in Xiamen” WeChat public account and website, and the 24-hour Chinese- and English-language investment service hotline. Furthermore, professionals from all walks of life were encouraged to take advantage of their expertise to promote investment, forming a strong joint force in attracting foreign investment.

Service 

Solving Hard Problems and Delivering Practical Results 

Sustaining FIE’s Confidence in Investment 

Xiamen has steadily strengthened project follow-up services and increased the level of assistance. The city has made strong efforts to enhance the working mechanism for high-priority investment promotion projects; they pushed forward high-priority foreign investment projects by vigorously advancing project execution and investment fund actualization; these efforts delivered substantial practical results. The Commerce Bureau also joined hands with the Taxation Bureau, the Foreign Exchange Administration and the Foreign Investors Association to resolve practical issues for enterprises and to promote and clarify investment policy, thereby encouraging FIEs to increase investment and expand production. 

WeDoctor Group is a global leader in digital medicine. Since late 2018, the Group has focused on Xiamen as a key area for investment and development. The Group has poured RMB 1 billion into its medical, pharmaceutical, medical insurance business and its investment ecosystem in Xiamen. It has recently completed the construction of Xiamen WeDoctor Internet Hospital in Huaxia Medical Park. 

According to WeDoctor executives, since its arrival in Xiamen, the Group has received all-round assistance and support from the city’s Commerce Bureau in project execution and facilitation. On the high-priority projects, the Commerce Bureau has responded to all requests made by the Group and provide comprehensive coordination, helping the Group explore all possibilities of basing its projects in Xiamen. Commerce officials have also made active efforts to provide resource matchmaking services for various projects of the Group, such as the International Digital Medical Center, Xiamen WeDoctor Internet Hospital, and Health Finance. “Officials from the city’s Commerce Bureau visit enterprises regularly to find out more about enterprises’ business development and practical issues; they also provide policy support information. As such, we feel that Xiamen is a great city that embraces foreign investment and the new economy; the city has created a superb business environment.”