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Tibet

  • (1) Inward and outward investment of Tibet in 2015
  • 1) UTILIZATION OF FOREIGN CAPITAL

In 2015, Tibet welcomed three new foreign investment projects, with the contractual foreign investment amounting to US$169.6401 million; and the actual utilization of foreign capital coming to US$69.97 million. Foreign direct investment in Tibet in 2015 came mainly from the Hong Kong SAR, and BRI countries were not involved.

Tibet mainly used foreign capital in the industries of featured minerals, beer, mineral water, beverages, hotels, tourism, commerce and trade, catering, medicine and healthcare, wool processing and marketing, energy and featured handicrafts. FDI was mainly from the Hong Kong SAR, Nepal, British Virgin Islands, Cayman Islands, Denmark, Canada, Taiwan of China and Australia.

2) OVERSEAS INVESTMENT

In 2015, eight Tibet enterprises reported overseas investment projects and their investment amounted to US$126 million. They invested in the United States, Nepal, Sweden, Mauritius and the Hong Kong SAR. The industries involved included R&D and sales of medical devices, wholesale and retail sales of daily commodities, software R&D, and construction. In 2015, there was one overseas investment project in BRI countries and the investment, US$434,500 in total, went to Nepal.

Overseas investment from Tibet showed the following characteristics: First, the majority of investment entities were private enterprises making small investment. Second, growth was fast, and the number of enterprises making overseas investment increased year by year. Third, the fields of investment are expanding. In recent years, after depending mainly on commerce and trade during the early stage, Tibet’s outward investment gradually expanded into the fields of medicine, mining, natural water, food processing, civil aviation, etc. The level of investment and cooperation improved and the scale expanded.

  • (2) Problems
  • 1) UTILIZATION OF FOREIGN CAPITAL

First, although the economy and society of Tibet have developed enormously since the reform and opening-up of China, the autonomous region is still less developed than most other regions in China, and it is far less attractive to foreign capital than other regions. Thus, it is difficult to significantly promote foreign investment in Tibet.

Second, with the central government investing more in Tibet, infrastructure in the region, including energy, transportation and communication, has been greatly improved. In particular, the Qinghai-Tibet railway and Lhasa-Shigatse railway greatly improved the investment environment of the region. However, compared with other regions, especially the eastern and coastal areas, infrastructure in Tibet is still backward, and there is still a long way to go with regard to the conditions and environment to attract foreign investment.

Third, the history of foreign capital utilization in Tibet is short, and the relevant policy system and corresponding implementation measures to encourage foreign investment still need to be improved. Publicity and promotion have also been insufficient, and foreign investors generally lack knowledge of the actual situation of Tibet.

2) OVERSEAS INVESTMENT

First, the industrial investment from Tibet is generally small in scale and made by small-sized enterprises with limited innovation capacity. Investors have weak ability to guard against risks and thus find it hard to survive in the international market. The international competitiveness of local featured products is thus weakened.

Second, the management innovation ability of Tibetan enterprises needs to be improved. Outstanding restrictions include capital, technology, talents and corporate management system. The lack of senior management talents for overseas investment makes it hard for Tibetan enterprises to adapt to the fierce competition in the international market.

Third, there is insufficient market information, and a lack of understanding of investment projects. In the process of overseas investment, enterprises’ knowledge of targeted countries is still insufficient, particularly in terms of investment environment, market supply and demand conditions, the degree of industrial competition and government policies, resulting in poor performance or nonperformance as well as other predicaments in the course of operation.

(3) Prospects for 2016

First, Tibet will strive to introduce large-scale projects and improve the scale, quality and level of foreign investment, and make further efforts to improve the investment environment and the management and service level for existing foreign-funded enterprises. It will encourage foreign investment to shift to competitive featured industries in Tibet, green and clean industries and industries with wide linkages, so as to improve the quality of foreign capital utilization significantly.

Second, Tibet will make use of various investment attraction platforms to promote investment attraction.

Third, it will cultivate an important carrier for inward and outward investment by promoting industrial park development.

Fourth, it will actively participate in the implementation of the BRI, strengthen cooperation with and opening further up toward India and Nepal, and further enhance the scale and quality of inward and outward investment.

Fifth, it will actively implement the new version of the Administrative Measures for Overseas Investment, simplify the review and approval procedures, give full play to the guiding role of policy funds, and encourage local enterprises to make overseas investment.

 
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