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In 2015, against the backdrop of the sluggish recovery of the global economy and the economic new normal of China, Dalian seized major historical opportunities such as the BRI, and the new round of efforts to revitalize Northeast China. Firmly targeted at innovation-driven development and following the general principle of making progress while maintaining stability, Dalian made active and innovative attempts to improve quality and efficiency, pursue steady growth and achieve a more balanced structure of inward and outward investment. Remarkable results were achieved.
In 2015, 222 foreign-invested enterprises were established in Dalian, with a new contractual foreign investment of US$2.52 billion, an increase of 127.3% from the previous year; and the actual utilization of foreign capital was US$2,703 billion, an 8.1% year-on-year increase.
In 2015, Dalian actively reinforced its appeal to traditional markets and actively explored emerging markets in BRI countries, hosting investment promotion activities in 16 countries and regions, including Japan, the Republic of Korea, Europe, the Hong Kong SAR, Singapore, Malaysia, Sri Lanka, Kazakhstan, Belarus, and Turkey. The efforts were quite fruitful. Progress was made in projects such as the Phase II project of Intel Dalian Lab, the Panasonic automotive battery project, Phase II of the Pfizer project, Goodyear’s “Dragon Five” project and R&D center and a number of new projects landed in the city, including Samsung’s biopharmaceutical project, the project of Hanwha Group’s financial services division, the second complex of Pavilion Dalian, the Pacific Place, the Detroit electric vehicle project, and the Goodyear aircraft tire project. Taking the Summer Davos meeting as an opportunity, Dalian planned and organized a series of activities such as signing ceremonies, high-level meetings and industry-themed tours. Contracts were signed for 13 major projects, including the Goodyear Dalian Phase V expansion project and Magnum International speedway, securing a total foreign investment of US$1.7 billion. At China International Software & Information Service Fair, Dalian CIMM Group, Jinzhou New District and Zaamor Diamonds of India signed a cooperation agreement. Dalian Jinzhou New District reached a cooperation intention with Etsuyou Tsusyou Co., Ltd. to build a cross-border e-commerce platform and a warehousing and logistics base. Dalian
Eco-Tech Innovative City signed a cooperation agreement with Wipro Co., Ltd. to build a software and service outsourcing delivery center. Dalian Sun-good TCM Hospital Co., Ltd. and Neusoft Corporation joined hands with a trade company in Azerbaijan for a long-distance heath care platform project. Large foreign investment projects played an important role in accelerating the transformation and upgrading of traditional industries and promoting the development of strategic emerging industries.
Dalian actively attracted foreign investment into leasing, with 31 foreign-invested financial leasing enterprises approved in 2015, involving US$460 million of foreign investment, an increase of 210% and 88.5% respectively over 2014. Projects in this regard include Yizheng Financial Leasing Co., Ltd., Houying Financial Leasing Co., Ltd., Great China Honor Financing Limited, Yaoshun Financial Leasing Co., Ltd., Chunde Financial Leasing Co., Ltd. and more. These projects effectively promoted the development of Dalian’s real economy and small and medium-sized enterprises.
Dalian constantly improved its platforms for opening-up. Policies were improved continuously and Several Opinions on Promoting a New Round of Opening up was issued as an overarching guide for Dalian’s opening-up during the 13th Five-Year Plan period. The Jinpu New District played a central role in the city’s opening-up, and efforts to improve the management system and mechanism of the district advanced in an orderly way. The State Council formally approved the change of Pulandian from a city to a district. Dalian actively learned the experience of the China (Shanghai) Pilot Free Trade Zone, launched eight institutional innovations and carried out in-depth research on the planning and layout of the proposed Dalian free trade zone, moving forward in its effort to submit the proposal. The 19 key coastal industrial parks moved faster forward in infrastructure construction and industrial cluster development. In the year, investment in fixed assets in the 19 parks reached RMB273.625 billion, accounting for 59.5% of Dalian’s total, and the actual utilization of foreign capital amounted to US$1.05 billion, accounting for 38.9% of Dalian’s total.
2) OVERSEAS INVESTMENT
In 2015, Dalian approved 108 overseas investment projects, and the contractual investment from the Chinese side totaled USS3.356 billion, a 17.5% year-on-year increase.
Dalian organized and implemented various promotion activities. First, it organized enterprises to participate in investment policy briefings and matchmaking events held in Dalian by authorities of Russia, the United States, the Czech Republic, Poland, the United Kingdom, Romania, Tanzania, Uganda and other countries. Second, Dalian held symposiums of government agencies, enterprises and banks to explain national policies, guide enterprises to explore the international market, and help enterprises obtain the suppoil from banks and credit insurance companies. Third, it hosted project promotion and economic
Regional investment analysis report 2015 255 and trade events in BRI countries like Kazakhstan, Belarus, Turkey, Malaysia, and Sri Lanka. These activities helped China Dalian International Economic & Technical Cooperation Group launch infrastructure projects in Malaysia and Sri Lanka to build highways, ports, affordable housing and solid waste treatment facilities in cooperation with local partners. Dalian Guangshengyuan Industrial Co., Ltd. built a rail transport industrial park in Kazakhstan, Dalian Machine Tool Group proposed to build a factory in the China-Belarus Industrial Park, and Dalian CIMM Group signed a contract with Kazakhstan’s CACM Project Investment Company.
Dalian supported local enterprises to carry out overseas project contracting. The city supported and pushed for the establishment of an alliance of international project contractors, creating a new mode of information-sharing, cooperation, clustered overseas operation, and joint contracting of major overseas projects. ACRE Coking & Refractory Engineering Consulting Corporation signed contracts for two coking projects with an iron and steel company affiliated to Tata Group of India, and a number of contracted overseas projects worth more than US$100 million commenced construction, including the oil terminal and liquefied gas storage tank project in Jordan undertaken by China Dalian International Economic & Technical Cooperation Group; more projects of a similar scale are in the making, including the highway construction project in Myanmar undertaken by China Dalian International Economic & Technical Corporation, the power plant construction project in Kuwait undertaken in cooperation with State Power Investment, and the Khabarovsk wharf project in Russia undertaken by Dalian Huarui Heavy Industry Group Co., Ltd.
(2) Development trends and prospects for 2016
In 2016, Dalian will adhere to the new development concepts of innovation-driven, coordinated, green, open and shared development, participate in global economic cooperation in an all-round way, strive to create an innovative investment facilitation service system and mechanism, explore new ways to open further up, and promote the upgrading of investment models and expand new investment space to create new advantages for opening-up.
The actual utilization of foreign capital is expected to be no less than US$3 billion, and the contractual overseas investment from the Chinese side is to increase by 10% over the previous year.
First, Dalian will strive to open up new space for its opening-up. It will make greater efforts to replicate and promote the experience of the pilot free trade zones in Shanghai, Tianjin, Fujian and Guangdong, and speed up the exploration and make more breakthroughs in terms of foreign investment management based on negative list, the trade supervision system focusing on trade facilitation, the financial innovation system aiming to realize, in the course of opening-up, capital account convertibility and opening-up of the financial services industry. It will expand the platform for opening-up based on the BRI and the new round of
Northeast revitalization campaign. The city will produce a sound development plan for its participation in the implementation of the Belt and Road Initiative and form a new pattern of opening-up, accelerate the formation of a project catalogue for opening-up, and economic and trade cooperation with BRI countries to tap into new space for Dalian’s opening-up. In accordance with Several Opinions on Promoting a New Round of Opening up, Dalian will speed up the cultivation of new competitive advantages for its participation in and leadership in international economic cooperation so as to push its opening-up and development to a higher level and a broader stage.
Second, Dalian will create a new landscape in investment attraction. It will reinforce its appeal to traditional markets such as Japan, the Republic Korea and the Hong Kong SAR, actively expand important new markets like Europe, the United States, Singapore and Taiwan, China, and vigorously tap into emerging markets such as Australia, Southeast Asia and South America. It will take into consideration the industrial advantages of relevant countries and regions and effectively match them with Dalian’s development needs, and plan and organize a new round of overseas investment attraction activities. It will continue with the work of attracting foreign investment within China, and organize investment attraction activities in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Pearl River Delta and other areas where headquarters of foreign enterprises concentrate so as to attract investment from these headquarters. The city will step up its efforts to secure major foreign investment projects, launch Dalian’s action plan for “Made in China 2025,” give priority to investment projects in modern sendees industries such as finance, commerce, logistics, cultural creativity, industrial real estate, tourism, medical care and senior care, and do more to bring in projects in petrochemical, equipment manufacturing, shipbuilding, information, clothing and other industries conducive to the transformation and upgrading of traditional industries. It will encourage foreign investment in strategic emerging industries such as integrated circuits, energy storage technologies, industrial robots, new materials, bioengineering, energy conservation and environmental protection, vigorously promote foreign cooperation in projects relating to infrastructure and public services, such as ports, roads and bridges, and waste disposal. In line with the development orientation of key industrial parks, the city will vigorously promote themed investment attraction, industry chain investment attraction and industrial cluster investment attraction. The Jinpu New District will target its investment attraction efforts at the electronic information industry represented by the integrated circuits industry, strategic emerging industries such as biopharmaceuticals and new energy, and advanced equipment manufacturing represented by CNC machine tool, automobile and spare parts, as well as modern services such as shipping, logistics and international trade. Changxing Island will focus its investment attraction work on the petrochemical and marine equipment industry, Dalian High-tech Industrial Zone will take software and information outsourcing and finance as the priority in its investment attraction efforts. Investment attraction of other key industrial parks will be in line
Regional investment analysis report 2015 257 with their specific direction of industrial development. Dalian will actively introduce new ways to utilize foreign capital, including through financial leasing, commercial factoring, venture capital, industrial investment funds, PPP, Internet-plus initiatives, M&A, and the mixed ownership reform of state-owned enterprises.
Third, Dalian will build a new stage for international cooperation. It will actively encourage local equipment manufacturing enterprises to participate in international capacity cooperation, and gradually establish an effective mechanism for enterprises to go global in a government-driven, enterprise-led and commercially feasible way so as to help enterprises explore the international market. It will guide enterprises to seek funding from the Silk Road Fund and Asian Infrastructure Investment Bank and help obtain financial support from China Development Bank and China Export and Credit Insurance Corporation. It will coordinate with trade associations and other service organizations to establish sendee systems, and establish regular contacts with China's overseas business organizations and embassies of other countries in China, and provide all-round sendees for enterprises to participate in international capacity cooperation. It will give full play to the advantages of the clustering effect of the alliance of international project contractors, shift from single project contracting to integration and general contracting, and from the low-level, low-profit areas at the lower end of the value chain to high-tech, high-profit and high-value-added fields, so as to promote the export of proprietary technologies, mechanical and electrical products and complete equipment.
Fourth, Dalian will create a new pattern covering the whole city. It will adhere to the concept of all-round and in-depth opening-up and strive to level up its full-covering opening-up. The city will further promote the improvement and integration of special customs supervision areas, seek to establish a comprehensive bonded zone on Changxing Island and accelerate the construction of and investment attraction to the bonded zone. It will accelerate the transformation and upgrading of municipal industrial parks, and based on the demands of the existing municipal industrial parks and the requirements of the city’s opening-up, step up the promotion efforts, strive to upgrade most parks into provincial-level ones, and maintain the city’s leading position in Liaoning Province in terms of the quantity of upgraded parks. It will also promote the overall construction of the key coastal industrial parks to a new level.