The transfer situation of industrial transfer

Although great changes have taken place in the economic and social outlook of western China, the expected large-scale transfer of eastern industries to the west has not occurred, and the gap between the east and the west has not narrowed.

From the international background, the industrial transfer between the east and the west is a strategic demand for China to cope with international economic competition. The high cost of manpower, water, electricity and land in East China has squeezed the profit margin of investment, and the international competition is becoming increasingly fierce. In view of China's policy of attracting foreign investment, neighboring developing countries have introduced more preferential measures, attracting a very large amount of foreign investment. The Institute of International Trade and Economic Cooperation of the Ministry of Commerce pointed out that many foreign enterprises started to set up factories in Vietnam, India, Cambodia and other places. Once the cost of business in China continues to rise, these enterprises will turn their orders to branches in Southeast Asia.

At the same time, developed countries have also increased their encouragement for the return of funds. The withdrawal of overseas investment by developed countries has emerged. The United States promulgated the "Local Investment Law", which reduced the income tax rate of American companies' overseas earnings from 35% to 5.25% for a period of 1 year, provided that these earnings were invested in the United States. According to JPMorgan Chase's calculation, this will bring back more than 400 billion dollars for the United States. Experts believe that if the country does not speed up the formulation of the policy of investment from east to west during the Eleventh Five-Year Plan period, foreign capital may choose to flow to the Philippines, Vietnam and other places, resulting in a large amount of capital loss.