Foreign investment will be further concentrated in the fields of modern service industry and high-end manufacturing industry. In the traditional fields of textile and electronics, under the influence of the rising labor force and the Sino-US trade friction, a considerable number of enterprises have experienced difficulties, and the trend of traditional enterprises' transfer to Southeast Asia, South Asia and Africa has increased significantly. The draft of the Catalogue of Industries for Guiding Foreign Investment was open for public opinions, although it has not yet been released, it explicitly proposes to encourage foreign investors to invest more in modern agriculture, advanced manufacturing, high-tech, modern service industries, etc., and give full play to the role of foreign capital in the transformation and upgrading of traditional industries and the development of emerging industries.
From the trend of our research, foreign enterprises also agree with this point. They now also believe that on the one hand, such kind of traditional processing industry can't compete with China's private enterprises, and on the other hand, it gradually becomes inconsistent with China's industrial policy.
[On the afternoon of May 28, 2019 Beijing Headquarter Economy International Forum]