China's speed of attracting investment and the bulk of investment have attracted world attentions in recent years. Some scholars think the basis for attracting foreign capital has changed already, so the theories guiding foreign investment attraction need modification. Hu Jingyan, Director of Foreign Capital Department of Ministry of Commerce points out that China will adhere to the policy of active, reasonable and effective application of foreign capitals, the Guangming Daily reports.
The argument focuses on two issues: too much foreign capitals will threaten safety of China's economy; some competition will do harm to domestic enterprises, according to Jin Bosheng, a researcher with the Research Institute of Ministry of Commerce.
Jin says these worries are unnecessary. The FDI will not control or monopolize important industries that are connected with national economy and people's livelihood. In the Directory for Foreign Investment 2002, all industries are divided into four categories, according to which foreign capitals are encouraged to enter, allowed to enter, restricted to enter and forbidden to enter respectively. Not all industries are open to foreign capitals. The practice in more than 20 years has proved that the superiors survive the competition and the inferiors are eliminated at market.
China is the No. 1 destination of foreign investment in 2003, says World Investment Report issued by the United Nations Conference on Trade and Development in September. At present, China is still the most attractive destinations for foreign capitals in the world. By the end of August 2004, China has applied foreign investment of US$ 545.029 bln. Experts forecast the gross foreign investment will exceed US$ 60 bln in the whole year, hence the year that receives most foreign capitals.
Simple figures or proportions are not criterion for evaluating the bulk of foreign capitals. The true standard is if the foreign capital play the role it is supposed to play and if it is beneficial to healthy growth of national economy. Foreign investment has made contribution to China's economic development since China's opening. The advanced technology, management experience outweighs the capital itself. More importantly, it makes positive contribution in alleviating the employment pressures.
By People's Daily Online