China will shift the focal point of utilizing foreign investment
from attracting funds to introducing advanced technology,
management and specialized talents, officials said on Monday.
According to China's plan of using foreign investment and making
investment abroad for the period of 2001-05, China will channel a
major part of foreign investment to its service sector instead of
the manufacturing sector, which used to draw the largest amount of
foreign funding in the past.
The
State Development Planning Commission (SDPC) said China will
introduce foreign funding mainly through foreign direct investment
and other channels. The government will strengthen guidance of and
supervision over foreign invested projects, instead of relying on
administrative examination and approval to control such projects in
the past.
The SDPC predicts that three areas -- government-encouraged
industries, central and eastern areas of China, and transfer of
advanced technology and management -- will see the fastest growth
of foreign investment in the next few years.
According to the SDPC, China will encourage foreign investors to
put their money in fields such as agriculture, high-tech industry,
infrastructure and environmental protection. China will also
encourage multinational companies to set up production bases in the
country.
By
gradually opening its service industry to foreign investors, China
will focus on introducing advanced operational methods, management
expertise and skilled professionals from abroad.
The SDPC said that China will allow a group of large state-owned
enterprises (SOEs) to sell part of their shares overseas.
International companies will be allowed to own the majority shares
of Chinese SOEs. Some of the SOEs will be selected for overseas
listing.
China is planning to help a big number of foreign-funded
enterprises establish themselves in western area of the
country.
In
the meantime, coastal areas in east China will upgrade the
standards of technology and added value so as to create new
competitive edges.
The SDPC said China will maintain the scale of using loans from
international financial organizations and foreign governments in
the next few years. However, it will use the money in a wider
scope, including projects for infrastructure, ecological
environment, poverty elimination and social development.
China will also keep the overall size of its foreign debt under
control, SDPC officials say.
(China
Daily December 25, 2001)