During the "13th Five-Year Plan" period, Jiangsu's use of foreign capital is facing challenges such as the bleak prospects for global economic and trade growth, the return of manufacturing from multinational corporations in developed countries, the hike of interest rate in the U.S. dollar and depreciation of the RMB, the economic downturn in China and the continued increase in costs of domestic factors of production. But at the same time it also possesses the following advantages: developed manufacturing, manufacturing cluster development, as well as abundant scientific and educational resources and talent advantages which are able to help attract foreign investment. In order to attract foreign investment, Jiangsu should grasp the correct guidance to increase the efforts for foreign capital intake, strengthen the supply-side reform to transfer excessive foreign capital capacity, and create a good investment environment to draw foreign investment into key areas. Therefore, it is suggested that Jiangsu should: first, improve administrative efficiency, strengthen government service awareness, and reduce the transaction cost of foreign capital settlement; second, expand the open areas, improve the investment environment and enhance the utilization efficiency of foreign capital; third, build a science and technology innovation center for industries to attract multinational companies' R & D headquarters and operation headquarters through fiscal and financial policies; fourth, implement large-scale technological transformation of enterprises to improve their technical levels and provide industrial support.
