Top Trade Official Outlines China's FDI UtilizationChina welcomes overseas investment in its high technology sectors, state-owned enterprise (SOE) reform as well as its western region, said China's top trade official Shi Guangsheng.Shi, minister of foreign trade and economic cooperation (MOFTEC) , said this at a three-day national working conference on foreign trade. MOFTEC will adopt new policies and explore new means of investment, in an effort to encourage overseas investors to inject funds into China's high technology sectors, set up research and development centers and regional headquarters in China, Shi said. He stressed that China welcomes FDIs particularly in its information, automobile, electronic and mechanical sectors, chemical and textile industries as well as some auxiliary industries. In addition, MOFTEC will perfect laws and regulations to encourage overseas investors to participate in China's SOE reform and acquire bad loans from asset management companies, Shi said. On the other hand, SOEs are encouraged to carry out diverse cooperation programs with foreign investors and list their shares on stock markets at home and abroad, Shi added. Overseas-funded companies in east China are encouraged to invest in infrastructure construction, environment protection, science, technology and education in China's west, Shi said. He added that China will encourage its small and medium enterprises to absorb overseas investment and expand cooperation with overseas-invested companies. In the meantime, China will open its service trade sector step by step, which includes banking, insurance, telecommunications, foreign and internal trade, and tourism, Shi said. During the meeting, Shi called on foreign trade supervisory bodies across China to follow the new situation and new problems that may come up after China's opening of its service trade, and timely perfect its laws and regulations to boost the sound development of the sector. Statistics show that China's FDI absorption is on the increase this year. The first 11 months saw contractual foreign investment in China surging 36.3 percent year on year to US$48.57 billion. Foreign capital actually utilized during the period dropped 2.3 percent on an annual basis, amounting to US$36.24 billion. Analysts here say China's FDI utilization this year will remain at more or less the same level as in 1999. |
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