China maintains momentum in attracting foreign funds ( 2003-09-14 09:41) (Xinhua)
China is expected to maintain
the momentum in wooing overseas funds, agreed economists attending the ongoing
international High-tech Expo held in Beijing.
Zhang Hanya, secretary-general of the China Investment Association, said that
in the past 20 years, overseas investment has always been an important driving
force in China's economic development. In 2002, China ranked first in the world
in attracting overseas investment. Despite the impact of severe acuterespiratory
syndrome (SARS) in spring, China still made great progress in this respect, he
said.
Latest statistics from the Ministry of Commerce show that in the first seven
months this year, foreign direct investment in thecountry was 33.35 billion US
dollars, up 26.63 percent over the corresponding period last year. China is
expected to use foreign funds of 60 million US dollars in real terms for the
year.
Lin Zongtang, president of the China Industrial Economic Federation, said
that several factors will support the growth of foreign investment.
According to Lin, China will gradually open its banking, telecommunications,
trade and tourism sectors to foreign investment and encourage overseas business
to join in the restructure of China's state-owned companies. These policies will
provide foreign investors huge opportunities to enter China, he said.
More foreign investors have noticed the great potential to develop in China.
According to China's policy, they are encouragedto invest in agriculture,
manufacturing, and high-tech industries.
China welcomes foreign companies to set up research institutes,manufacturing
bases, technological development bases and regional headquarters. They can take
various channels to cooperate with their Chinese counterparts in technical
upgrading or development of key technologies.
Investors' enthusiasm in China could be easily witnessed at theexpo.
Investors from all over the world have brought more than 3,000 investment plans
to the expo, according to He Hualong, vice-chairman of the China International
Economic and Technological Cooperative and Promotion Association.
"It has become an agreed concept for those investors with perspicacity to
seize Chinese market, " said He.
Currently, more than 400 out of the top 500 multinationals haveset up
companies in China. By July 2003, China had approved set upof 446,441
overseas-funded companies, backed up by contractual overseas funds of 887.2
billion US dollars, or 481.3 billion US dollars in real term.
Economists agreed that with the entry into the World Trade Organization
(WTO), China will speed up its reform and opening up.Improved legal system and
mature market mechanism will provide a better environment for overseas
investors.
