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THE EXPERIENCE OF DEVELOPED COUNTRIES IN ATTRACTING
FOREIGN INVESTMENTS TO THE NATIONAL ECONOMY (CHINA)
Jumanova Gavkhar
Basic Doctoral student at Tashkent State University of Economics
E-mail: gjumanova56@gmail.com
https://doi.org/10.5281/zenodo.15861605
Annotation:
This article explores how developed countries, particularly
China, attract foreign investments and how Uzbekistan can apply these
strategies to enhance its national economy. It analyzes key factors such as
investment policies, infrastructure development, skilled labor force, and
strategic partnerships that have made China successful in drawing foreign
investors. The article also examines the current economic landscape of
Uzbekistan, identifies challenges, and suggests reforms based on China's
experience to improve Uzbekistan's investment climate and integration into the
global economy.
Keywords
:
investment, foreign investment, economy, inflation, investment
environment, investment attractiveness
, overseas experience
Foreign investments are all kinds of forms of wealth that are directed to the
sectors of the economy of another state, to the entrepreneurial sector, in order
to obtain high income, to achieve effect: property, financial and intellectual. The
main difference between foreign investments and domestic ones is that foreign
ones are financed at the expense of external sources and their penetration is
encouraged. Long-term experiments on attracting investments in foreign
countries there are those that depend on the economic environment in this
country, investment policies, political and legal conditions. Including countries
such as the United States, China, Canada, Mexico, Australia, Belgium, Thailand
have advanced experience in attracting investments.
Inflation rates are expected to normalize as a result of financial and
monetary expansions involving the impact of the Covid-19 pandemic, which
have brought dramatic cases around the world. According to the International
Monetary Fund, the inflation rate of 9.4% in 2022 and 6.7% in 2023 is projected
to be 3.5% by the end of 2025. China is active in foreign investment, using
various strategies and methods attracts.The main factors of the successful
attraction of Chinese investments- creation of special economic regions and free
trade zones, foreign investors the activities of joint ventures in cooperation with
this advanced technology for the development of the country's local industry
and it is the promotion of direct investment that brings innovation. In recent
decades, China has entered foreign direct investment liberalized the rules
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regarding arrival, which is less so to foreign enterprises allows restrictions to be
imposed. Study of the features of tax systems of foreign countries, their positive
and focusing on the negative aspects, taking into account the disadvantages and
advantages, developing, as well as economic and Political of world countries the
Independent Republic of Uzbekistan, which became an equal member of its
integration by perfecting the financial and budgetary system, taxation system
serves to make our country more progressive. Hence the New Laws that apply in
the conditions of the economy of Uzbekistan, the tax system alternatives to solve
their problems, when choosing and making decisions it is necessary for us to
learn the practice of foreign countries and gain experience. We see below this
several countries that have developed processes and its peculiarities let's look at
the scale. In the countries of the world, the bulk of the measures of the tax
system that stimulate investment are aimed at measures related to profit tax
(49% of the total newly introduced tax incentives). It should be noted that in
2011-2022, 34.4% of benefits to investors in profit taxes fell on the contribution
of African countries, 27.4% on Asian countries, 22.1% on Latin America and the
Caribbean, 16.1% on the contribution of European and North American
countries.
China from taxation in stabilizing foreign trade and foreign investment
for the purpose of full use, the state tax administration has adopted the current
tax policy and revised and updated collection management measures and
2024,announced on January 15,foreign investment and foreign trade compiled a
new revision of the”Tax Policy Directive on stabilization". The last Directive is to
stabilize foreign trade and foreign investment,it consists of 51 policies. 19 of the
51 policies deal with foreign trade stabilization, including the policy of export of
goods and services, cross-border
Value-Added Tax Policy on taxable activities, external discount and
exemption of policies and export taxes on new forms of trade policy, 32
stabilization of foreign investments, for example, taxation related to politics.
These updated policies give taxpayers a policy of help to understand and use
them, while China is constantly the expansion of open access and foreign trade
and foreign investment the fact that it strongly strengthens its foundations and
strengthens confidence in the market gives a positive signal about.
Appendix 1. FDI in China, 2014-2023
Unit: US$100 million
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Year
Number of New FIEs
Realized FDI Value
Total
393906
14963,2
2014
23794
1285,0
2015
26584
1355,8
2016
27908
1337,1
2017
35662
1363,2
2018
60560
1383,1
2019
40910
1412,2
2020
38578
1493,4
2021
47647
1809,6
2022
38497
1891,3
2023
53766
1632,5
From the table, we can see that in recent years, a total of 14,963.2 million
dollars of foreign direct investment has ben attracted to China.In 2023,the
investments attracted were 347,5 million dollars more compared to 2022,there
was decrease of 258,5 million dollars.The experience of developed countries
show that successful attraction of foreign investments requires a comprehensive
approach,including improving investment climate,developed infrastructure and
active cooperation with international partners.China has demonstrated that
stable economic policies and create favorable business conditions provide
growth in foreign direct investment.It would be appropriate for Uzbekistan to
apply the following methods used by China to attract investments from foreign
countries:
1.Tax incentives.China offers various tax benefits to attract foreign
investors,such as a low income tax rate and tax exemptions for certain sectors.
2.Advanced infrastructure.China actively develops necessary infrastructure
to make country an attractive region for investments in logistics,transport and
technology.
3.Strategic location.
4.Investment guarantees.China provides protection of property rights and a
stable government for investors.
5.Government support.The Chinese government actively promotes investments
through various initiatives,initial financing,education and training and researc
h
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References:
1.
Decree of the President of the Republic of Uzbekistan dated July 26, 2023,
No. PF-112 ‘On Measures for the Social and Economic Development of the City of
Tashkent Until 2030’"
2.
World Investment Report. International Production Beyond the Pandemic.
UNCTAD. Geneva. 2020.
3.
Gu Lishu. Research on China's direct investment in the new four ASEAN
countries [D]. Dongbei University of Finance and Economics, 2014: 62.
4.
Development of investments in fixed assets in the Republic of Uzbekistan
by sources of financing. invest.gov.uz/mediacenter/news/development-of-
investments-in-fixed-assets-in-the-republic-of-uzbekistan-by-sources-of-
financing/ (2021)
5.
"Resolution of the Cabinet of Ministers of the Republic of Uzbekistan. ‘On
measures to further improve the system of forming the investment program of
the Republic of Uzbekistan and increase its efficiency.’ Dated January 14, 2023,
No. 16.".
