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Foreign Direct Investment Up
The amount of foreign direct investment (FDI) in China turned around last year after declining for two years.
The investment increased 0.93 per cent in 2000 to US$40.8 billion, according to statistics from the Ministry of Foreign Trade and Economic Co-operation (MOFTEC).
The 1997 Southeast Asia financial tumult sent FDI in China plunging.
Investment dropped 5.4 per cent to US$40.3 billion in 1999 and 2.29 per cent in the first 11 months of 2000.
Foreign investment officials said the declining trend slowed last year and the year-on-year monthly decline reversed in October.
A recent report by the United Nations forecasts a rosy future for FDI in China, saying that after the country's entry into the World Trade Organization (WTO), it will be one of the most attractive places for investment in the world.
Experts said the upsurge in FDI in China indicates a strong wish by foreign investors to conduct business in the country.
The amount of promised FDI increased 50.84 per cent to US$62.7 billion last year, statistics from MOFTEC show.
China approved 22,532 foreign-investments in enterprises in 2000, up 31.76 per cent since 1999.
A total of 364,345 foreign-invested enterprises had been approved to conduct business in China, promising a total of US$676.7 billion foreign capital.
China has made use of US$348.6 billion FDI till the end of last year, MOFTEC statistics indicate.
Experts believe that China's WTO accession will further open up the country's market to foreign investors and is expected to push up its use of foreign investment.
China's strategy to develop its central and western regions and various policies to encourage foreign businesses to invest in China will also help attract foreign investment in the country, they said.
But other experts said FDI in China is not expected to increase until the country's investment environment is improved.
Foreign businesses want to see that the Chinese Government is committed to carrying out its promises in joining the WTO.
Chinese foreign investment officials remain cautious and suggested that it was reasonable to maintain last year's FDI level in 2001.
At the annual national working conference on foreign trade and economic co-operation last year, the Minister of Foreign Trade and Economic Co-operation Shi Guangsheng said the country would strive to make use of US$40 billion each year during the current five-year plan period. (China Daily)
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