According to the latest issue of the "China Economic Times", China's fixed asset investment will further increase this year.

China's fixed asset investment in 1999 was 2.2 trillion yuan, an increase of 7.8 percent over 1998. Despite the lower growth rate than expected at the beginning of last year, the investment increase last year had stimulated the country's economic growth.

The Chinese government will continue to promote its pro-active fiscal policies, including the issuing of some 100 billion yuan long-term construction bonds to invest in infrastructure projects and for technological updating in China's enterprises.

Possible tax reductions are expected to accelerate investment growth in the fixed assets sector.

China will also introduce new policies to help boost fixed assets, including the amendment of the "Company Law" to support the development of new and high-tech enterprises.

Many investors see the enormous potential of investing in China's western regions. China's upcoming entry into The WTO will also create new opportunities for investment in fixed assets. Experts predict that the entry will reverse the declining trend of foreign investment and help social investors regain their confidence.

Experts believe that China's fixed asset investment will maintain an upward momentum this year. Other types of investment will also grow at a faster rate.

All kinds of investment entities such as domestic enterprises and foreign companies will work together to promote and develop fixed asset investments in China. (Xinhua)