Analysis Of Incentive Treatment System For Foreign Investor

The issue of the treatment for the foreign investor is an important matter in the international law of investment. From the beginning of reformation and opening, we have adopted the policy which encouraged the enter of foreign capital along with the measure of restrict in order to resolve the problem of pinch of capital. Encouragement mostly incarnated in every incentive policy.Our country's system of incentive treatment for the foreign investor has accelerated the development of economy. But we also must realize one important issue. Excessive prompting for foreign capital also gave birth to variety wicked domino effect while it bring into play stimulative function in expanding the quantity of capital, speeding the advancement of technology and augmenting the chance of employment. Especially in the circumstances which the condition of investment had been increasingly improved, potential in market been immensity and the model of increasing in economy been transferred, our country's system of incentive treatment for the foreign investor is difficult to completely adapt the requirement of the economic development. The national treatment in the rule of World trade Organization bring forward new opposite requirement to our country's system of incentive treatment for the foreign investor.In the more twenty years of reformation, our country's economic level has got prodigious elevation and the condition of investment has been improved. At the same time, as a developing country, Chinese condition of investment still has got a good many problems. Most country in the world, especially most developing countries, take policy of prompting in order to increase the entry of foreign capital. All of this at a certain extent occupied a part of capital that ought to enter our country. Under this situation, in case we hastily cancel the incentive treatment for the foreign investor, it cannot but bring tremendous strike to the continued andstable development. Therefore, in certain period, we should consummate our country's system of incentive treatment for the foreign investor in the principle of assorting with the rule of World trade Organization with a criterion of suiting our country economic development in a positive, reasonable and availability manner. First, we must constitute uniform code in incentive revenue. Second, in the domain of revenue, we should carry out the policy that gives priority to the national treatment and assist with conditional incentive revenue. Third, we should transfer the existing incentive policy guiding to export to a policy that gives prominence to domain and technology. We Lastly, we should change existing policy paying attention to littoral to a policy that gives prominence to comparatively behindhand hinterland.