A senior Chinese official has stressed the importance of the role of foreign direct investment (FDI), emphasizing that in this increasingly open world, FDI has become an important driving force for economic globalization.

FDI has enhanced the optimum distribution of global resources, expedited industrial restructuring, and promoted innovations in the economic system and technology.

State Councilor Wu Yi made these remarks in a written speech at Sunday's opening of the 2002 International Investment Forum, an integral part of the 6th China International Fair for Investment and Trade (CIFIT) which is currently underway in Xiamen, Fujian Province, east China, from September 8-11.

It is of great significance for this forum to make "FDI: Create International Competitiveness" the topic for our discussion, the official said. She believed the forum has also strengthened the links between countries and regions.

Wu said that FDI is crucial to the development of the economy, exports, employment opportunities, and competitiveness in the host countries. In addition, it generates potential opportunities for investors to gain initiative or to get a competitive edge within the framework of international competition, she said.

The official told the audience that the Chinese government has been attaching great importance to international investment and cooperation, working towards the optimization of the investment climate for FDI. Reform and opening up are now government policies in China, she stressed.

The Chinese government will spare no efforts to adhere to the policies of effective and more efficient use of FDI to facilitate the development of both FDI and the national economy, the official said.

As a member of the World Trade Organization, the Chinese government will carry out its commitments to grant greater access in relevant areas step by step and to reduce or abolish tariffs, as appropriate, according to the state councilor.

To date, a great deal of work has been done to perfect the legal system and to rectify and standardize the market order to create an open, transparent and predictable market environment, she said.

"We guarantee the continuity and stability of the policy for FDI, and will further optimize the investment environment, improve efficiency and facilitate foreign investment and trade," the official said.

In the implementation of the Western Development Initiative, the Chinese government is now working for the harmonious development of the regional economy and is encouraging foreign investors to invest in central and western regions, Wu noted.

She assured the audience that the Chinese government also attaches equal importance to the "Draw More Foreign Investment" and "Go Global" policies, not only in order to attract more foreign investment for China, but also to encourage Chinese enterprises to take an active part in international competition and cooperation.

The International Fair for Investment and Trade has been held for six consecutive years. "This successful fair is a window of opportunity for foreign friends and entrepreneurs to learn about China; at the same time, it also provides Chinese entrepreneurs with a good opportunity to learn about foreign countries and to participate in an expanding global market," the official said.

She expressed her hope that cooperation between China and foreign enterprises will be strengthened, that international competitiveness will be increased, and that a bright future will be created through our joint efforts.

(Xinhua News Agency Septembert 9, 2002)