Japanese tech giant sets to expand business operations in China
The file photo shows Huang Zhigan(R) talking with reporter from China Radio International. [Photo: Chinaplus]
Japanese tech giant RENESAS says that it's set to expand its operations in China. The company says that it's confident about China's market potential, and believes that the easing of restrictions in recent years has enhanced the business environment for foreign firms.
Huang Zhigan is a financial executive with the Beijing arm of the Renesas semiconductor business.
He said that improvements to China's business environment here has helped reduce his company's costs over the past five years.
"China's business environment has changed a lot over the past five years. China's government has rolled out a series of policies to streamline administrative approval procedures, and improve services for investors, which is helpful for companies that want to save time and effort in their daily operations. Many business matters can be dealt with online. For instance, when we changed the scope of our company business license, we lodged the application online and it's ready in five working days. And some authorities, such as the commerce administration, and the tax and customs agencies, have worked together to help simplify the declaration process for companies."
Huang added that his company has also benefited from China's tax reforms over the past few years.
He said that last year's tax cuts have reduced costs and saved the company around a million yuan over the past year.
The annual sales of Renesas electronics increased by 20 percent in 2017. Recently the wholly-owned Japanese chips manufacturer inked deals with some domestic companies including Chinese internet giant Baidu and Great Wall Motor to offer integrated circuit design and production services.
Huang Zhigan explained that setting up a division of the business in China was one of the ways that the company has worked to improve its prospects in the domestic market.
"First, we hope to seize new opportunities from the fast-growing Chinese market, and gain new clients. We're set for a fully-fledged expansion of our businesses in China in the future. Second, we will strengthen cooperation in product design and manufacturing. And we want to improve our cooperation with China's government and various industry bodies. We will enhance coordination among our subsidiaries, such as the sales firms, factories, and design centers. I believe we have bright prospects in China's market."
To attract foreign investors, authorities in China have pledged to further protect the lawful rights and interests of foreign enterprises.
And local governments are also vying with each other for foreign investment.
In June, Beijing delivered a plan to improve the business environment, by giving equal treatment to all enterprises and abolishing rules that impede fair play.
Yang Ying, an official with the tax bureau in Beijing's Haidian district said they're offering online services for companies and simplifying application procedures.
"The tax bureau in Haidian is the first revenue authority in Beijing to introduce paperless applications, which helps save companies trips to our office. After receiving application materials from companies, we check them online and issue tax refunds as soon as possible. Big companies like Renesas can get a refund within three working days. And we've set up Wechat groups to keep companies informed about recent policies."
Some analysts have said that simplifying the procedures for founding a company, and improving investment facilitation, have given a boost to the confidence of foreign investors.
In the first half of the year, foreign direct investment in the high-tech manufacturing industry rose 25 percent year on year, led by growth in investment into medical instruments, and communications and computer equipment.