Chinese Push for More Foreign Investment

Here are some new insights into China's strategy to strengthen its economic development through foreign direct investment. This is what we are up against as the economic skies begin to clear. How will compete against this? We need to work together in dealing with our economic development from abroad, especially China and India.

China is expected to maintain the momentum in wooing overseas funds, agreed economists attending the ongoing international High-tech Expo held in Beijing.

Zhang Hanya, secretary-general of the China Investment Association, said that in the past 20 years, overseas investment has always been an important driving force in China's economic development. In 2002, China ranked first in the world in attracting overseas investment. Despite the impact of severe acuterespiratory syndrome (SARS) in spring, China still made great progress in this respect, he said.

Latest statistics from the Ministry of Commerce show that in the first seven months this year, foreign direct investment in thecountry was 33.35 billion US dollars, up 26.63 percent over the corresponding period last year. China is expected to use foreign funds of 60 million US dollars in real terms for the year.

China welcomes foreign companies to set up research institutes,manufacturing bases, technological development bases and regional headquarters. They can take various channels to cooperate with their Chinese counterparts in technical upgrading or development of key technologies.

Currently, more than 400 out of the top 500 multinationals haveset up companies in China. By July 2003, China had approved set upof 446,441 overseas-funded companies, backed up by contractual overseas funds of 887.2 billion US dollars, or 481.3 billion US dollars in real term.

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