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A leading US insurance company has pledged to do more to help China attract foreign direct investment in the coming years.
The Boston-based Liberty Mutual Group is co-operating with Chongqing municipal government to set up an industrial park targeting foreign investors. It also hopes to develop a successful model for foreign direct investment in China's private sector.
Alexander Fontanes, senior vice-president and chief investment officer of the US insurance giant, told China Daily in an interview last week that the company plans to use its resources and capital to achieve its aims, especially in Chongqing, a large industrial city and economic centre in Southwest China.
"China has unique opportunities for sustained growth and Chongqing plays an important role in China's western development programme," he noted.
During Fontanes' tour of Chongqing last week, he and his colleagues discussed plans for a new industrial park with senior Chongqing officials.
The park's convenient transport links and proximity to US auto giant Ford's plant in Chongqing would attract both Chinese and foreign investment in auto parts and speciality chemical projects, Fontanes said.
The industrial park would initially cover 10 square kilometres before expanding to 20 square kilometres.
Liberty Mutual has handed over a development proposal for the park, likely to require several hundred million US dollars in investment, to Chongqing government and is discussing details of co-operative ties.
Liberty Mutual established Liberty Pacific Direct Investments Ltd in 1998 to draw in foreign investment. The Hong Kong-registered company is charged with identifying and developing investment projects in China, with its initial focus on Chongqing and the Yangtze River basin.
Since its establishment, the company has invested in 10 projects worth a total of US$60 million in China, said Ferris C. Bye, managing director of Liberty Pacific Direct Investments Ltd.
The small- and medium-sized projects are in the health care, auto services, building materials and consumables sectors. Most involve the private sector.
Liberty's goal is to develop these companies and list them on the Shanghai or Hong Kong stock exchanges in three to four years, creating a successful model for attracting foreign direct investment to China, Bye said.
Investments in such projects are usually expected to return between 20 to 30 per cent, he said.
In 2000, Liberty Mutual also launched the New World Liberty China Ventures Ltd in co-operation with other partners. The venture aims to raise US$600 million for small- and medium-sized private enterprises in China. So far, it has raised first-stage capital of US$150 million.
(China Daily April 1, 2003)
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