Professor Liu Zhibiao, Dean of Yangtze IDEI, pointed out that “giving play to the important role of foreign enterprises in promoting real economy development” has three implications. First of all, it regards the construction of a legalized business environment as a strategy for boosting entity economy. Secondly, it fully affirms the contribution of foreign enterprises to China’s development as the main body of real economy, and justifies the previous practices of introducing foreign capital. Thirdly, it establishes the relations among a legalized business environment, introducing foreign capital and developing real economy and highlights the dependency of foreign capital on a legalized business environment. The concept is based on the following four backgrounds: (1) The healthy and sound development of China’s real economy in the past was achieved in the context of economic globalization leveraging two markets and two resources. Foreign enterprises have produced huge spillover effects in technology and management, and boosted China’s real economy with low-end manufacturing as the main component;(2) Due to current changes in domestic and foreign conditions, a large number of Chinese enterprises have overseas business but less foreign capital flows into China. China is facing huge challenges in utilizing foreign investment. This is also an important factor that shakes the status of China’s real economy; (3) Domestic policies on utilizing foreign investment have changed. In recent years, some people believe that various problems come along with our excessive absorption of foreign capital. China has been used by foreign capital and our environment has been polluted by foreign enterprises. In response, the central authorities stated that what we should do is to create a more favorable investment environment to attract more foreign capital; Developed countries such as Europe and the United States are attracting our investment, why do we think that we have attracted too much foreign investment? (4) China’s business environment is deteriorating. The Central Economic Work Conference proposed to “build a legalized business environment and make more efforts to attract foreign investment”. The CPC Central Committee and the State Council have released the Opinions on Improving the Property Rights Protection System and Lawfully Protecting Property Rights and called for accelerating the compilation of the Civil Law Code in order to strengthen protection of property rights of organizations of different ownerships and natural persons. In reality, there are often various forms of infringement on the property rights of private enterprises. Our most urgent need is to follow the deployment of the central government, stick to the principle of “rectifying mistakes”, and identify and correct misjudged and unjust cases involving infringement of the property rights of private enterprises, in order to restore and improve entrepreneurs’ confidence in China’s development. In this regard, Yangtze IDEI experts and scholars exchanged their opinions on the topic “How to Play the Important Role of Foreign Investment in Promoting the Development of Real Economy”.
