China Creates Better Investment Environment

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Last updated at: (Beijing Time) Tuesday, March 04, 2003

China Creates Better Investment Environment

Foreign enterprises in China are flourishing amid efforts by the Chinese government to create a better investment environment and services for foreigners.

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Foreign enterprises in China are flourishing amid efforts by the Chinese government to create a better investment environment and services for foreigners.

"The Chinese government has been actively supporting and guiding its private economy in order to build it into a major economic force," said a Russian entrepreneur who has been developing a business in China for three years.

Kouvchinov Victor Aleksandrovich, 65, is the president of the privately-owned Ropat Closed Joint-Stock company.

In July 2000, his company set up a joint venture to produce computer-based intelligent construction machinery with its Chinese partner, the Harbin Honggang Groups, a private Chinese company.

Kouvchinov had visited China previously before deciding to invest in the China Harbin Ropat Hydraulic Equipment Co., Ltd. in Harbin, in the northeastern province of Heilongjiang.

"Chinese law has recognized the legitimate status of private enterprises and they are viewed as a major economic driving force," said Kouvchinov.

In 2001 and 2002, Kouvchinov's joint venture received free start-up financial aid worth more than two million yuan (242,130 US dollars) from the state and province.

"We can see clearly that China is trying every effort to create conditions for enterprises and the private ones will benefit," said Aleksander Drulopov, president of the Linker Co., Ltd., a Russian logistics enterprise on Beijing's outskirts.

The favorable environment created by the Chinese government had made it possible for private Chinese enterprises to expand rapidly.

"We will increase our investment in China this year," said Drulopov, adding that he believed China had a promising future for economic development.

The fifth nationwide medium and small-sized enterprise sample survey shows that by late 2001, China boasted more 2.03 million private enterprises, employing 27.14 million people and contributing over 20 percent of the country's gross domestic product.

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