Number of foreign firms decreases in Beijing

   Date:2012-02-16

According to statistics of the Beijing Administration for Industry and Commerce, in 2011, the number of the foreign-funded enterprises in Beijing decreased, but their investment scales increased. The average scale of the newly-founded foreign enterprises in Beijing increased.

In 2011, a total of 2,922 foreign-funded enterprises were founded in Beijing, up 7.1 percent compared to 2010; their total investment amount was 5.7 billion U.S. dollars; the amount of their total registered capitals was 3.6 billion U.S. dollars, and the total amount of the external registered capitals was 2.8 billion U.S. dollars, up 18.8 percent, 13.4 percent, 2.7 percent respectively.

The average registered capital of the newly-founded enterprises was about 2.5 million U.S. dollars, up 16.2 percent compared to that of 2010. By the end of 2011, the total number of foreign-funded enterprises in Beijing was 25,672, up 3.3 percent compared to that of the end of 2010. The total amount of their registered capitals was a little more than 80 billion U.S. dollars, up 12.4 percent.

The number of Beijing's resident representative offices had decreased by 40 percent. In 2011, the number of the external enterprises' resident representative offices newly established in Beijing was 292, down 55.35 percent. The total number of foreign enterprises' resident representative offices in Beijing was 9,217, down 39.5 percent.

After the Regulation on the Administration of Registration of Resident Representative Offices of Foreign Enterprises (Regulation, for short) was published, the effects of the annual report and management system newly implemented were quite obvious, and a lot of representative offices “existing in name only” have been abolished.

The decrease of the newly-founded representative offices was caused by the fact that China ended the preferential policy on representative offices importing cars in 2009. The Regulation, which took effect in 2011, has further standardized and improved the supervision and management.

Both the number and investment scale of the enterprises founded by Hong Kong in Beijing rank first. And Japanese investment has significantly increased. Regarding the amount of the external registered capitals of the newly founded enterprises in Beijing, the top five sources are Hong Kong (1.479 billion U.S. dollars), Germany (435 million U.S. dollars), Japan (223 million U.S. dollars), the United States (178 million U.S. dollars) and Singapore (62 million U.S. dollars).

Compared with 2010, the registered capital of Hong Kong’s companies had not changed much. That of German companies had increased by more than 5 times, Japan’s by 86 percent, the United States' more than 20 percent, and Singapore's by 2.21 times (due to its small base number).
 

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