At a time when “everyone says it’s tough,” a single speck of dust that has quietly fallen from the times has made everyone feel its heavy weight.

Investment promotion professionals are the guardians of economic development and the stewards of regional industrial transformation and upgrading. In this year’s major test of “stabilizing the economy,” they have remained steadfast, fully demonstrating their sense of responsibility.

The tide of the world surges forward; only by aligning with the broader trends can we face obstacles without fear and ride the waves to success.

To break through difficulties and usher in innovation, the state has introduced numerous policies closely tied to industrial development and investment promotion, providing guidance for future investment attraction efforts.

In 2023, the answer to how and in what direction we should carry out our work may well be found within these policies.

01 Support for Private Investment

Local governments are highly enthusiastic about investment promotion, yet corporate willingness to invest remains low.

Investment promotion is, in itself, the result of corporate investment site selection. As the mainstay of fixed-asset investment across society, the market performance of private investment has always been a source of concern for all parties.

In early November of this year, the National Development and Reform Commission issued the "Opinions on Further Improving the Policy Environment and Strengthening Support for the Development of Private Investment," outlining 21 measures that signal a shift in the current downturn of private investment.

Every investment promoter likely shares this observation: over the past two years, the capacity and willingness of private enterprises to invest have largely been constrained by rising raw material costs and insufficient market demand.

Since private investment is premised on achieving reasonable returns, promoting such investment must be carried out in accordance with market principles.

The "Opinions" are highly innovative and targeted, supporting and guiding private investment to participate in major project construction while using market-based approaches and reform measures to improve expectations for private investment.

Similarly, the "Opinions" chart a crucial course for private investment, offering recommendations such as encouraging participation in "new infrastructure" and the development of the digital economy, thereby paving the way for local investment promotion and the growth of the private sector.

To promote the development of market entities and the private economy, the General Office of the State Council issued the "Opinions on Further Optimizing the Business Environment and Reducing Institutional Transaction Costs for Market Entities," an important measure aimed at alleviating the burden on market entities and stimulating market vitality.

02 Revitalizing the Industrial Economy

It clearly stipulates that procedures should be simplified, supervision strengthened, and the burden on enterprises reduced.

The 20th National Congress of the Communist Party of China proposed “focusing economic development efforts on the real economy,” and in December, policies to ensure industrial development were promptly implemented.

In December, the Ministry of Natural Resources issued the "Notice on Improving Industrial Land Supply Policies to Support the Development of the Real Economy," which refined and innovated industrial land supply policies in terms of supply methods, procedures, clarification of rights and responsibilities, land use conversion, and compliance supervision.

Land is an essential element for local investment promotion and corporate investment. Today, against the backdrop of tightening land resource constraints, it is necessary to make reasonable arrangements for industrial land and reserve more space.

At the same time, land supply methods and the allocation of rights and obligations must be optimized to meet the diverse land demands arising from a wide range of industries, numerous market entities, and varying levels of development.

Currently, many regions have been exploring land supply methods such as long-term leases, lease-to-own arrangements, and flexible lease terms for an extended period. The "Notice" further clarifies the definitions of these supply methods, facilitating their standardized implementation.

In the future, by enhancing the efficiency of the “tendering, auctioning, and listing” mechanism, we will further align regional industrial development with land use policies, resolve conflicts between regional investment promotion efforts and the “tendering, auctioning, and listing” mechanism, and thereby better improve the precision of industrial land allocation.

In November, the Ministry of Industry and Information Technology, in conjunction with relevant departments, issued the "Notice on Consolidating the Upward Trend and Bolstering the Industrial Economy," which also aims to intensify policy efforts to further revitalize the industrial economy.

It is evident that the direction and main focus of investment promotion—shifting from the virtual to the real economy—remain unwavering.

03 Encouraging Foreign Investment

Taking the lead in investment promotion means accelerating development.

Recently, multiple provinces have organized delegations to go overseas to expand markets, sending a strong signal of their determination to “boost the economy.”

Meanwhile, in late October, the National Development and Reform Commission and the Ministry of Commerce publicly released the "Catalogue of Industries Encouraging Foreign Investment," which has significantly boosted the expectations and confidence of foreign-invested enterprises while also providing regional investment promotion officials with a reference for attracting foreign capital.

Currently, global industrial chains are undergoing profound transformation, and China faces significant external pressure in attracting high-quality foreign investment.

The "Catalogue" is a crucial policy for foreign investment industries and regional development, playing a vital role in supporting the growth of foreign-funded enterprises, guiding investment directions, and optimizing the regional distribution of foreign capital.

In the past, when people thought of foreign-invested enterprises, they always first thought of eastern coastal cities.

Indeed, coastal regions have a relative locational advantage over inland areas; however, this "Encouragement Catalog" places greater emphasis on domestic regional distribution, with the central, western, and northeastern regions becoming the focus of attention moving forward.

The Catalogue lists the competitive industries of different regions one by one, aiming to guide foreign-invested enterprises to settle in the central, western, and northeastern regions, and to leverage the exogenous comparative advantages of foreign investment to promote the rational flow and efficient aggregation of various factors of production.

Coincidentally, in October, the "Several Policy Measures on Promoting the Expansion, Stabilization, and Quality Improvement of Foreign Investment with a Focus on Manufacturing," jointly issued by multiple departments, prioritizes attracting foreign investment in manufacturing as a key lever to strengthen foreign investment promotion and services.

It is foreseeable that in the coming period, “chartered flights to attract foreign investment” will not be limited to coastal regions; inland cities will also actively step up efforts to attract foreign-invested enterprises.

04 Development of Development Zones During the 14th Five-Year Plan

A “locomotive” must possess ample power and strong momentum.

Development zones and high-tech zones serve as the "backbone" and leaders of regional economic development. They often bring together the region’s dominant industries and leading enterprises along the industrial chain, and they set the tone for a region’s policy direction.

On November 9, the Ministry of Science and Technology released the “14th Five-Year Plan for the Development of National High-Tech Industrial Development Zones,” further clarifying the future development direction and key tasks for national high-tech zones.

The Plan mentions the need to enhance the innovation-driven capabilities and talent resources of high-tech zones, build first-class supporting facilities for talent services, elevate the level of basic and applied basic research, and intensify efforts to tackle key core technologies in priority industrial sectors.

The direction for investment promotion and enterprise cultivation in high-tech zones across the country has also become clearer: building strategic emerging industry clusters and targeting enterprises with outstanding core technological capabilities and technological leadership.

Consequently, high-tech zones across the country are poised to become the “birthplaces” of enterprises such as “specialized, refined, distinctive, and innovative” companies, “hidden champions,” and “single-champions.”

The Plan also sets out development goals for 2025, guiding the future work direction of investment promotion personnel in high-tech zones and development zones.

05 National Unified Market

A facade of unity, but a lack of substance—change is imminent.

This year, the integration of an “active government” and an “effective market” has become a key direction for economic and industrial development, with numerous policies aimed at better combining the two.

In April of this year, the "Opinions on Accelerating the Construction of a National Unified Market" issued by the Central Committee of the Communist Party of China and the State Council sought to comprehensively drive the transformation of China’s market from size to strength by building a national unified market that is efficient, standardized, fair, and fully open.

Currently, coordinated regional development has taken shape to some extent, but overall, it possesses only the “form” of internal division of labor and integrated development, lacking the “substance” of truly integrating factors, markets, and mechanisms. The establishment of a unified national market is precisely what will breathe life into coordinated regional development.

In fact, regions such as the Yangtze River Delta, the Beijing-Tianjin-Hebei region, and the Pearl River Delta have already served as pioneers in regional integration, and their successful experiences can provide valuable references and lessons for other regions.

However, continuing to develop primarily through urban agglomerations may create new imbalances between regions; only by facilitating the circulation of resources and factors across a broader scope can we avoid the emergence of new barriers.

06 County-Level Economic Development

"When counties are well-governed, the realm is at peace."

County-level economic development is one of this year’s key focuses. As the link between urban development and rural revitalization, high-quality development at the county level is particularly crucial.

Amid the tension between development and challenges, the state has successively issued major policies such as the "Opinions on Promoting Urbanization with County Towns as Key Carriers" and the "Implementation Plan for New-Type Urbanization during the 14th Five-Year Plan Period," charting a course for county-level development.

Provinces and municipalities have also responded in turn: Hunan issued the “Implementation Plan for Promoting High-Quality Development of County-Level Economies (2022–2025)”; Liaoning released the “Opinions on Accelerating the High-Quality Development of County-Level Economies”; and Hebei published the “Action Plan for Cultivating ‘Leading’ Enterprises in Hebei’s County-Level Specialized Industrial Clusters”…

Each of these initiatives aims to boost county-level development, enabling weaker counties to catch up and stronger counties to make further strides.

Today, a county in Zhejiang has even drawn the attention of the provincial Party secretary and governor—that county is Jiashan.

As early as September of this year, the National Development and Reform Commission issued the “Construction Plan for the Jiashan County High-Quality Development Demonstration Site in Zhejiang during the New Development Stage,” designating Jiashan County as the nation’s sole demonstration site for high-quality county-level development.

As a demonstration zone for common prosperity, Zhejiang will also use this as a lever to build a robust county-level economy.