Tianjin's Experience: Foreign Capital Be Used in Proper Places ����During the Eighth-Five Year Plan period, Tianjin had a GDP merely at an annual average of 6.1%, then a percentage below the national. But when it came to the years 1993-97, it grew to an annual average of 13.5%, a much greater percentage over the national average in the way it took Tianjin less than four years to accomplish the task of quadrupling its production starting from 1980. ����An important practice by Tianjin is that an efficient rational use must be made of all foreign capital introduced, making it sure that it be used in places it has the greatest need so as to obtain the greatest economic returns from input. Foreign investment in Tianjin has not been used in construction of high buildings or large halls but on streamlining production. ����Tianjin being an old industrial base in China, a large number of old industrial enterprises used to be developed and carry on with an obsolete mechanism. What was more, most of these had suffered from various economic losses instead of achieving gains. This had compelled Tianjian from the very start to make good use of foreign investment and see to it old industrial enterprises be transformed and upgraded and that a new life be acquired by them as breakthrough points in developing economy. ����Tianjin Camera Factory is one that has had the first camera of Tianjin produced. Originally for a loss of RMB$17 million yuan it had been placed in a state of bankruptcy. But since it went into cooperation with ROK Samsung it came to have most advanced products produced and be rewarded with an annual profit of RMB$10 million yuan during the two years 1996-97. Tianjin No.712 Factory and Tianjin Electric Appliances Factory, Tianjin Motor Plant and Tianjin Escalators Plant are four manufacturers that have also given no differences in their development as that of Tianjin Camera Factory helped by developing cooperation with their ROK, Japanese and US counterparts, respectively. ����Experiences show that foreign capital should be used in proper places needed. Using foreign capital takes a lot of learning when industrial production is developed, not to say great successes that have been achieved by Tianjin in using large amounts of foreign funds for large-scale city construction in recent years. ���� Economicnews 1999-01-11 Page2 Full Story in Chinese