Most of the foreign-funded companies that have been closed have characteristics like interim and early investment, large investment amount, and large number of employees in Suzhou. The reasons for the closure of well-known foreign-funded companies include high local production costs; global business shrinkage of the foreign parent company; headquarters acquisition or merger; upstream purchaser business shrinking or closing; products or businesses replaced by innovative products; government's implementation of production safety and environmental protection policies; and companies cashing in by closing factories, etc. For optimizing the environment for the utilization of foreign capital, the following policy recommendations are put forward: firstly, clarify the development orientation of urban industries and create new core industries to attract talents; secondly, transform the investment model based on cheap production factors to attract enterprises that can form new industrial clusters and at the core end of the industrial chain; thirdly, selectively implement industrial chain upgrading which focuses on intelligent transformation; fourthly, attach great importance to the cultivation of skilled workers; fifthly, further reduce the burden of social security costs on enterprises, and implement social security's free migration nationwide as soon as possible; sixthly, vigorously implement an innovation-driven strategy guided by domestic demand; seventhly, recognize the role of small and medium-sized enterprises in the national economy, and strengthen the confidence to take the industrial development path of "specialization, refinement, differentiation, innovation".
