China's total foreign trade volume will reach US$840 billion
this year and the inflow of actual foreign direct investment (FDI)
will level with last year's US$52.7 billion, said Vice-Premier Wu Yi
addressing the annual meeting of the Ministry of Commerce.
To increase FDI flow to China next year, Wu said China will keep
its favorable policies towards foreign investors untouched.
China's FDI in the first 11 months was US$47.2 billion, up a
mere 0.2 per cent from a year earlier.
But this is a big achievement considering the global capital
flow dropped this year due to the gloomy world economic
climate.
"When the world economy warms up again, China should be prepared
to attract more foreign investment," Wu said.
More destinations favored by foreign investors, like the Yangtze
River Delta and Pearl River Delta, will benefit when foreign
investors move some industries outside developed countries.
"China will further open its financing, commercial and tourism
industries to foreign investors," Wu promised.
On the issue of foreign trade, Wu said the US$840 billion
predicted for this year was unexpected and demonstrated fast
growth, compared to US$620 last year.
Exports are expected to reach US$430 billion while imports will
climb to US$410 billion.
But analysts expect that it will be difficult to maintain a high
growth rate for exports next year, which is partly led by rising
trade friction and cuts in tax rebates set for next year.
To solve the problem, Wu urged local industries to use more
high-technology and increase the added value of exports.
(China Daily December 29, 2003)