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Gov't to Improve Investment
The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) vowed to improve foreign investments in China this year despite fierce competition from the global market.

"The gloomy world economy and slowing international demand has put restraints on the increase in transnational investments," said Minister Shi Guangsheng. "Competition is therefore tighter for foreign investments around the world. But China still has an edge in attracting foreign investors."

China's entry into the World Trade Organization will not only open up more sectors to investors, especially in service industries, but also improve its policies for foreign investors, he said.

"Joining the WTO signifies a new stage for China," Shi said at a reception on Friday for representatives from embassies to China, international organizations, and the Hong Kong and Macao special administrative regions (SARs).

"China will take this opportunity to expand international economic cooperation and promote mutually beneficial trade ties with other WTO members," he said.

The minister expressed his thanks to the representatives for their contribution in enhancing China's economic cooperation and trade ties with the world.

China's good economic performance and political stability are major attractions to foreign investors as well, said the minister.

Its gross domestic product rose 7.3 percent to 9,580 billion yuan (US$1,157 billion) last year and is expected to grow 7 percent this year.

He said the Chinese Government will do its best to maintain the stability and continuity of its policies on foreign investments and promote the introduction of advanced technologies, modern management techniques and the number of foreign specialists to China.

The minister added that in order to improve the quality of foreign investment, the MOFTEC must make sure that foreign capital improves the economic structure, industrial upgrades and corporate benefits.

Export expansion, creating more balanced development for regional economies and stepping up development in the country's relatively backward west, are also key issues, he said.

The ministry approved the establishment of 26,139 foreign-invested companies in 2001, up 16.01 percent from the previous year.

Contracted foreign direct investment rose 10.43 percent to US$69.19 billion and the actual input climbed up 14.90 percent to the record high of US$46.85 billion last year.

By the end of December, 390,484 foreign-invested companies had been officially approved to conduct business in China, according to MOFTEC statistics.

(China Daily January 28, 2002)

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