What exactly does foreign capital refer to 5, what exactly does foreign capital refer to

Foreign capital, foreign currency, or foreign funds. 1. Foreign capital refers to the funds inflowed into the market such as sole proprietorship, joint venture, and equity participation from other countries and regions (including Hong Kong, Macao and Taiwan) for the main purpose of engaging in economic and social activities, under the premise of complying with local laws and regulations, following the rules of market mechanism, and in line with the principle of mutual benefit and reciprocity.

2. In China, the use of foreign capital is mainly divided into three types: foreign direct investment (FDI), foreign loans and other foreign investment, of which FDI accounts for a large proportion.

On January 16, the latest data released by the Ministry of Commerce showed that in January 2015, the country's absorption of foreign investment showed a good momentum of development. In the same month, 2,266 foreign-invested enterprises were newly established across the country, a year-on-year increase; The amount of non-contractual capital reached 100 million US dollars, a year-on-year increase; The actual use of foreign capital was 100 million US dollars, a year-on-year increase. Specifically, factors such as the substantial increase in foreign investment in the financial services sector, the active foreign investment in the high-end manufacturing sector, the growth of investment in China by major countries and regions, and the increase in the scale of foreign mergers and acquisitions were the main reasons for the increase in the amount of foreign capital actually used in January.

A foreign-funded enterprise refers to an enterprise established in China with all the capital invested by foreign investors in accordance with the laws of the People's Republic of China. It does not include the branches of foreign enterprises and other economic organizations in China. The entire capital of a foreign-funded enterprise belongs to the foreign investor.

That is, foreign enterprises and other economic organizations or individuals invest in monetary or other statutory investment methods, and the ownership of all property belongs to the foreign investor. This distinguishes foreign-funded enterprises from Sino-foreign joint ventures and Sino-foreign cooperative joint ventures, as well as from enterprises that are entirely invested and set up by Chinese investors.

1) A foreign-funded enterprise is an enterprise established in China in accordance with the laws of the People's Republic of China. This is the basic characteristic that distinguishes foreign-funded enterprises from foreign enterprises. The establishment of a foreign-funded enterprise must be in accordance with the laws of China and meet the conditions stipulated by the laws of China.

In accordance with the statutory procedures, the application for examination and approval shall be registered and established by the enterprise registration authority, and the domicile of the enterprise shall be in China. A foreign enterprise is registered and established in a foreign country in accordance with the laws of a foreign country and is domiciled in a foreign country.

2) Foreign-funded enterprises are independent economic entities. Foreign-funded enterprises.

The organizational form is generally a limited liability company, which has an independent legal personality and can independently bear civil liability. This is different from the branches of foreign enterprises and other economic organizations in China. If a branch of a foreign enterprise or other economic organization does not have the status of a legal person and its assets are insufficient to pay off its debts, the foreign enterprise or other economic organization to which it belongs shall be liable for repayment.

Foreign-funded enterprises.

To put it simply, foreign capital is any asset that the host country accepts as an investment in accordance with its domestic laws, including but not limited to movable property (e.g., currency), immovable property, intangible property (e.g., intellectual property), various types of investments, bonds, and foreign loans. This is a conceptual premise.

Second, it should be clarified that foreign capital has two meanings: 1. Foreign (or foreign investment, the same below) direct investment, that is, investment that maintains a certain degree of control and management rights over its investment entity. For example, Sino-foreign joint ventures.

2. Foreign indirect investment, that is, investment in public or private enterprises in the host country through the purchase of **, bonds, conditional loans, etc., indirect investors generally do not participate in the operation and management of investment entities.

Qualified foreign businessmen can obtain loans from Chinese banks to engage in commercial and trade activities, but in terms of the nature of the payment, it is not "foreign capital". Foreign capital must be owned by a foreign**, legal person or private person.

China's attraction of foreign investment is mainly manifested in the following aspects according to the different stages of development:

1.In the initial stage, the attraction of foreign investment was mainly used for the construction of public infrastructure and the establishment of factories, so as to form a "hard environment" for economic development.

2.In the medium term, we will focus on attracting capital and projects that are conducive to technological improvement and scientific and technological creation, so as to improve China's scientific and technological innovation capabilities and prepare conditions for industrial transformation.

3.In the mature stage, with the principle of sustainable development, we will attract capital investment projects that are conducive to both economic development and environmental protection, so as to achieve coordinated development of economy and environment and comprehensive social progress.

As for the landlord's question of "what is the main attraction of foreign investment", I have already expressed it in the concept of foreign investment. I believe that the focus is not on "what to attract" but on "the purpose of attracting foreign investment".

When a country has no foreign capital, the domestic industry and economic model are very inrich! Under the premise of an unabundant economic model, it is more difficult to expand the overall economic scale, because a large amount of work is similar and inefficient!

The essence of introducing foreign capital is to introduce new economic models and new industries, so as to achieve the goal of expanding employment and improving living standards. Because when the country has no experience in new industries and new models, relying on domestic funds for development is very risky and unrealistic. So the vast majority of countries have chosen to introduce foreign investment!!

The introduction of foreign capital means that the state allows it to profit at home in exchange for the new economic model and new technology that the country needs!

The entry of foreign capital cannot be comprehensive, and this 'comprehensive' has two meanings: 1) comprehensive in terms of total quantity and 2) comprehensive in the industry. It is precisely because of this incompleteness that it will inevitably lead to the entry of foreign capital and inevitably drive the further development of the country's traditional or basic or advantageous industries, which is the so-called stimulating demand!

For example, with the introduction of foreign capital in automobile manufacturing, China can now produce some non-critical original components by itself, and the scale of the social economy has expanded and employment has increased because of foreign investment.

Foreign-funded enterprises are established by foreigners for a certain period of time in China.

Enterprises established for the people's economy to pay taxes for our country, and to supplement the industries lacking in the country.

The reason why it is called a foreign-funded enterprise is because it is built with foreign financing.

Foreign capital is the introduction of foreign and foreign capital. Foreign investment is from other countries and regions.

The main purpose of coming to the country is to engage in economic and social activities, and to comply with local laws and regulations.

Under the premise, follow the market mechanism.

Based on the principle of mutual benefit and reciprocity, the inflow of funds into the market such as sole proprietorship, joint venture, and equity participation.

In China, there are three main ways to utilize foreign capital: foreign direct investment (FDI), foreign loans and other foreign investment, of which FDI accounts for a large proportion.

The significance of the existence of foreign capital:

1. Make up for the lack of funds and promote China's economic construction. Economic construction requires a large amount of funds, mainly relying on domestic accumulation, but relying on domestic funds alone is always limited Today, all countries in the world regard the active use of foreign capital as an important means to accelerate the development of their own economies. The use of foreign capital is of great significance to speeding up China's economic construction.

2. Obtain foreign technology, equipment and management experience Because the introduction of foreign capital is usually combined with the introduction of technology, equipment and management experience, the use of foreign capital is an important means of introducing technology, equipment and management experience. In particular, some advanced technology, equipment, and experience in scientific management will be more conducive to speeding up China's socialist modernization.

3. It is conducive to absorbing and cultivating talents. The use of foreign capital can not only directly absorb the advanced technology and management talents that China urgently needs, but also help cultivate talents.

4. It is conducive to promoting export earnings. With the use of foreign capital, we can develop export-earning enterprises, including state-owned enterprises and collective enterprises that mainly earn foreign exchange through exports.

Township enterprises, Sino-foreign joint ventures or cooperative enterprises, and wholly foreign-owned enterprises.

All of these are conducive to China's export earnings and increase foreign exchange earnings.

Legal Analysis: Foreign-funded enterprises are a general concept, including all enterprises with foreign capital components. According to the proportion of shares and shares held by foreign investors in the registered capital and assets of enterprises, as well as other legal characteristics, foreign-funded enterprises can be divided into three types:

1. Sino-foreign joint ventures. Its main legal features are: there are statutory requirements for the proportion of foreign investors in the registered capital of enterprises; The enterprise adopts the organizational form of a company with a limited liability company. Therefore, this kind of joint venture is called an equity joint venture.

2. Sino-foreign cooperative joint ventures. Its main legal features are: there is no mandatory requirement for foreign investors to share in the registered capital of enterprises; Enterprises adopt flexible organizational management, profit distribution, and risk burdening methods. Therefore, this kind of joint venture is called a contractual joint venture.

3. Foreign-funded enterprises. Its main legal feature is that all the capital of the enterprise is owned by foreign investors.

Foreign-funded enterprises refer to the general term of laws and regulations related to the organization and activities of foreign-funded enterprises, and is a legal system formed by a large number of legislative norms related to foreign-funded enterprises. Its main contents include the organizational form, establishment and registration procedures, legal status, investment relations, legal documents, rights and obligations of both Chinese and foreign parties, organizational structure, operation and management, labor relations, taxation, foreign exchange management, dissolution and liquidation, etc.

Legal basis: Company Law of the People's Republic of China

Article 6 To establish a company, an application for establishment registration shall be made to the company registration authority in accordance with the law. If the establishment conditions stipulated in this Law are met, they shall be registered as a limited liability company or a stock company by the company registration authority; If it does not meet the establishment conditions stipulated in this Law, it shall not be registered as a limited liability company or a share****.

Where laws and administrative regulations stipulate that the establishment of a company must be submitted for approval, the approval formalities shall be completed in accordance with the law before the company is registered.

The public may apply to the company registration authority for inquiries into the company's registration matters, and the company registration authority shall provide inquiry services.

Article 7 A business license shall be issued by the company registration authority for a company established in accordance with the law. The date of issuance of the company's business license is the date of incorporation of the company.

The company's business license shall indicate the company's name, domicile, registered capital, business scope, name of legal representative, and other matters.

If there is a change in the items recorded in the company's business license, the company shall go through the change registration in accordance with the law, and the company registration authority shall renew the business license.

Foreign capital refers to the capital inflow from the sole proprietorship, joint venture, equity participation and other markets carried out by other countries and regions for the main purpose of engaging in economic and social activities, under the premise of complying with local laws and regulations, following the laws of market mechanism, and in line with the principle of mutual benefit and reciprocity. In China, there are three main ways to use foreign capital: foreign direct investment (FDI), foreign loans and other foreign investments, of which FDI accounts for a large proportion.

Foreign capital is a relatively vague concept of Jingzen Lingxue, which is generally used in the following three senses: first, foreign capital is understood as foreign capital, foreign currency or foreign funds; the second refers to foreign investment, that is, it is an act of international investment; The third refers to foreign investors, that is, from the perspective of the host country, foreign investors are usually referred to as foreign capital, which defines its meaning from the perspective of leasing large investment entities.

Foreign-funded enterprises refer to enterprises established within the territory of China that are invested and operated by foreign investors alone. According to the 1986 Law of the People's Republic of China on Foreign-Owned Enterprises, a foreign-funded enterprise is a 100% wholly foreign-owned enterprise, which does not include branches established by foreign enterprises, companies and other economic organizations in China. Including all enterprises that are in ruin and contain foreign capital.

However, according to the proportion of shares and shares of foreign investors in the registered capital and assets of the enterprise, it is different from other Sino-foreign joint ventures. Foreign-funded enterprises can be divided into three types according to their different legal characteristics: Sino-foreign joint ventures, Sino-foreign cooperative joint ventures and foreign-funded enterprises.

Article 2 of the Law of the People's Republic of China on Foreign-Funded Enterprises The term "foreign-funded enterprises" as used in this Law refers to enterprises established in China in accordance with the relevant laws of the People's Republic of China with all capital invested by foreign investors, excluding foreign enterprises and branches of other economic organizations within the territory of China.

Domestic capital refers to the capital flowing into the local area, excluding local Li Zhiji, enterprises or other investors in Chinese mainland to carry out legal business and economic activities in the local area. Foreign capital, on the other hand, refers to the capital that flows into the mainland by investors or enterprises other than those outside the mainland who come to the mainland to carry out economic activities such as production and operation. Therefore, the criterion for defining domestic and foreign capital is to look at the scope of investors.

FDI stands for Foreign Direct Investment, which allows capital to circulate between countries, specifically referring to investments in companies that are not operated in countries to which investors belong, mainly to obtain certain management rights of the company. A country's introduction of foreign direct investment can fully carry out the effective allocation of resources, promote the further development and progress of domestic employment and enterprises, and at the same time can help the industrial structure to adjust, so as to make the country's economy develop healthily, but at the same time, it may also bring some environmental pollution problems and will have a certain restrictive effect on the domestic industry.