Wednesday, July 13, 2005
People's Daily Online -- China forges two-way opening-up pattern
People's Daily Online -- China forges two-way opening-up pattern
Home >> Business
UPDATED: 17:08, July 13, 2005
China forges two-way opening-up pattern
China has been enjoying a favorable trend in foreign fund utilization since the reform and opening up more than two decades ago, said Assistant Commerce Minister Chen Jian at a press conference held by the State Council Information Office on July 12.
According to Chen, by the end of May, China had approved accumulatively the establishment of 520,000-odd foreign-funded enterprises, with a contractual value of $1.1 trillion, of which $584.4 billion had been actually in place.
The "going global" efforts by domestic companies are also rewarded. By the end of 2004, China's non-financial foreign direct investment (FDI) had added up to $36.8 billion; the total turnover of contracted projects in foreign countries reached $114 billion with a contractual value of $156.3 billion; labor cooperation with foreign countries achieved a turnover of $30.8 billion, with a contractual value of $36.1 billion and a workforce of 3,190,000 people dispatched overseas.
Foreign funds spur economic leaps
--Nearly 450 out of "Top 500" investing in China
During the first five months of this year, China saw 16,437 foreign-funded enterprises newly settled in the country, with a contractual value up to $64.97 billion, up by 14.88 percent over the same period of the previous year and including $22.366 billion actually paid in.
There have been more than 190 countries and regions coming to invest in China, their business covering manufacturing, service, agriculture, infrastructure and many other sectors.
Nearly 450 out of the world "top 500" transnational companies have invested in China, more than 30 of them having set up regional headquarters here. The number of foreign-funded R&D institutions has exceeded 600. China's capability in attracting foreign funds has in recent years increasingly enhanced, with the structure and quality of foreign investments continuously improved.
The use of foreign funds contributed to China's economic leaps, said Chen. As a main part of the nation's open economy, foreign funded enterprises have in recent years played an increasing role in promoting economic advancement. In 2004, foreign investment in fixed assets accounted for 12 percent of the national total, their industrial added value takes up as high as 28 percent and their export volumes 57 percent of the national total. Foreign funded enterprises directly employs 24 million people, about 10 percent of the national non-agricultural labor force.
Keep foreign investment policies stable
--Preferential polices not against WTO rules
Talking about the income tax gap between domestic and foreign firms, Chen said that taxation, as an important regulatory means, must be used for the purpose of sound national economic development, which is also the starting point of the formulation and implementation of our foreign fund utilization policies. Giving a certain degree of preference to foreign-funded companies is not against the WTO principle of national treatment.
To attract foreign investment with preferential policies is a common practice of in the world, said Chen. Continuity and stability of these policies should be maintained before relatively stable, reliable substitute policies are worked out.
China will further improve investment environment, perfect related laws and regulations and maintain policy continuity, Chen noted. Foreign investments in high-tech and modern service industries as well as in modern agriculture are particularly encouraged. The focus is to lure transnational companies to shift manufacturing links and R&D institutions with higher technological potentials and added values to China, and to push forward their cooperation with home companies in terms of technological development, resources procurement and market expansion.
"Going global" campaign in full swing
--Contractual value rose 45 percent
From January to May this year, China's non-financial FDI reached $1.8 billion; foreign contracted projects scored a turnover of $6.6 billion, up 10 percent over the same period of the previous year; value of newly signed contracts stood at $9.1 billion, up 45 percent; turnover of labor cooperation with foreign counties reached $1.6 billion, up 12 percent, with an additional contractual value of $1.5 billion, up 28 percent; by the end of May, the nation had a labor force of 520,000 people working overseas. While bringing in foreign funds, the country has been actively helping its companies to "go global".
China's economic growth indeed brings higher resource consumption, said Chen. However, its investment in resource fields cannot be labeled a struggle with the world for resources. China has always based its growth on domestic supplies. It certainly needs a considerable amount of resources, but its reserves are also large. China's foreign cooperation in mining is meant to promote common development through market exchanges and mining exploration.
China will further strengthen its "going global" strategy by improving law-making and service system, enlarging enterprises' decision-making power for operating overseas and enhancing risk prevention system to build a two-way opening-up pattern featuring both "bringing in" and "going global".
By People's Daily Online
Home >> Business
UPDATED: 17:08, July 13, 2005
China forges two-way opening-up pattern
China has been enjoying a favorable trend in foreign fund utilization since the reform and opening up more than two decades ago, said Assistant Commerce Minister Chen Jian at a press conference held by the State Council Information Office on July 12.
According to Chen, by the end of May, China had approved accumulatively the establishment of 520,000-odd foreign-funded enterprises, with a contractual value of $1.1 trillion, of which $584.4 billion had been actually in place.
The "going global" efforts by domestic companies are also rewarded. By the end of 2004, China's non-financial foreign direct investment (FDI) had added up to $36.8 billion; the total turnover of contracted projects in foreign countries reached $114 billion with a contractual value of $156.3 billion; labor cooperation with foreign countries achieved a turnover of $30.8 billion, with a contractual value of $36.1 billion and a workforce of 3,190,000 people dispatched overseas.
Foreign funds spur economic leaps
--Nearly 450 out of "Top 500" investing in China
During the first five months of this year, China saw 16,437 foreign-funded enterprises newly settled in the country, with a contractual value up to $64.97 billion, up by 14.88 percent over the same period of the previous year and including $22.366 billion actually paid in.
There have been more than 190 countries and regions coming to invest in China, their business covering manufacturing, service, agriculture, infrastructure and many other sectors.
Nearly 450 out of the world "top 500" transnational companies have invested in China, more than 30 of them having set up regional headquarters here. The number of foreign-funded R&D institutions has exceeded 600. China's capability in attracting foreign funds has in recent years increasingly enhanced, with the structure and quality of foreign investments continuously improved.
The use of foreign funds contributed to China's economic leaps, said Chen. As a main part of the nation's open economy, foreign funded enterprises have in recent years played an increasing role in promoting economic advancement. In 2004, foreign investment in fixed assets accounted for 12 percent of the national total, their industrial added value takes up as high as 28 percent and their export volumes 57 percent of the national total. Foreign funded enterprises directly employs 24 million people, about 10 percent of the national non-agricultural labor force.
Keep foreign investment policies stable
--Preferential polices not against WTO rules
Talking about the income tax gap between domestic and foreign firms, Chen said that taxation, as an important regulatory means, must be used for the purpose of sound national economic development, which is also the starting point of the formulation and implementation of our foreign fund utilization policies. Giving a certain degree of preference to foreign-funded companies is not against the WTO principle of national treatment.
To attract foreign investment with preferential policies is a common practice of in the world, said Chen. Continuity and stability of these policies should be maintained before relatively stable, reliable substitute policies are worked out.
China will further improve investment environment, perfect related laws and regulations and maintain policy continuity, Chen noted. Foreign investments in high-tech and modern service industries as well as in modern agriculture are particularly encouraged. The focus is to lure transnational companies to shift manufacturing links and R&D institutions with higher technological potentials and added values to China, and to push forward their cooperation with home companies in terms of technological development, resources procurement and market expansion.
"Going global" campaign in full swing
--Contractual value rose 45 percent
From January to May this year, China's non-financial FDI reached $1.8 billion; foreign contracted projects scored a turnover of $6.6 billion, up 10 percent over the same period of the previous year; value of newly signed contracts stood at $9.1 billion, up 45 percent; turnover of labor cooperation with foreign counties reached $1.6 billion, up 12 percent, with an additional contractual value of $1.5 billion, up 28 percent; by the end of May, the nation had a labor force of 520,000 people working overseas. While bringing in foreign funds, the country has been actively helping its companies to "go global".
China's economic growth indeed brings higher resource consumption, said Chen. However, its investment in resource fields cannot be labeled a struggle with the world for resources. China has always based its growth on domestic supplies. It certainly needs a considerable amount of resources, but its reserves are also large. China's foreign cooperation in mining is meant to promote common development through market exchanges and mining exploration.
China will further strengthen its "going global" strategy by improving law-making and service system, enlarging enterprises' decision-making power for operating overseas and enhancing risk prevention system to build a two-way opening-up pattern featuring both "bringing in" and "going global".
By People's Daily Online
# posted by Eastlaw @ 7:39 AM 
