China Rises to World Sixth Place in Soliciting Foreign Capital

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Last updated at: (Beijing Time) Wednesday, September 18, 2002

China Rises to World Sixth Place in Soliciting Foreign Capital

"Foreign direct investment inflows to China reached US$46.8 billion in 2001, a 15 percent rise over 2000. The momentum continued in the first half of this year, with inflows rising by 19 percent over the same period of 2001," according to the World Investment Report 2002, released Tuesday by the United Nations Conference on Trade and Development (UNCTAD).

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The UN Conference on Trade and Development issued its "World Investment Report 2002" in Beijing on Tuesday. As the report points out: when the year of 2001 saw a worldwide slump in direct foreign investment, China absorbed a direct investment of 46.8 billion in the US dollars, a rise of 15 percent as against the previous year. This has made China to rise from the ninth place in 2000 to the sixth place in the world, continuing to top the list of the developing countries and the region in the solicitation of foreign capital.

The report points out when the foreign investment hit a record high in 2000 the year of 2001 witnessed the first time drastic downturn in the worldwide direct foreign investment flow over the last 10 years. The year of 2001 saw in the worldwide foreign investment flow a big slump of 51 percent as against the previous year, reduced to 735 billion in the US dollars, of which US$ 503 billion went into the developed countries, US$ 205 billion to developing countries and another US$ 27 billion to middle and eastern Europe, the countries and regions in transition. The drastic downturn attributed mainly to the global economic depression, especially the going down slope of the world three big economic bodies, and that was followed with the reduction in the trading of transnational procurement.

It is forecasted in the report that China indicates no decrease in drawing in foreign capital in 2002 and direct foreign investment has continued to play an important role in Chinese economy. For the moment, the transnational corporation branches take up some 23 percent in the total added value of the Chinese industry, some 18 percent of taxation and 48 percent of total exportation. The UN experts in economy are of the opinion that along with China's entry into the WTO it can be expected that China will keep on a steady increase in touting for foreign capital in the years to come. China's entry into the WTO has further enhanced its smartness in attracting foreign investors and China has become a place of the first choice for transnational investors from the US and Japan and some other countries. And they are ready to reshuffle their production sectors in their native lands and shift them to operate in China.

Entrusted by the UN Conference on Trade and Development, the International Economic Cooperation Magazine together with Nankai University issued jointly the "World Investment Report 2002" in Beijing. On the very day, the yearly-published investment report was brought out simultaneously all over the world. It is quite an authoritative one. The main topic of the report is on "Transnational Corporations and Competitiveness in Export".

The "World Investment Report 2002" published Tuesday points out again, the rate in China's exportation taken up by the enterprises of transnational corporation investment rose from some 17 percent in 1991 to around 50 percent in 2001 and the rate is still on the increase.

As introduced by person in charge from the Foreign Investment Dept of the MOFTEC, up to now, it has seen 400 out of 500 world powers made their investment in China. The transnational corporations have almost entered all industrial sectors in China while the sectors find no signs of them are those in service industry or those not yet open to foreign investment.

By People's Daily Online

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