As the shadow cast over China's economy by the SARS epidemic begins
to fade, some international financial institutions have again
become upbeat about the country's economic growth. Foreign
investors are also gaining confidence in investment prospects in
one of the world's fastest developing economies.
The sudden outbreak of the SARS epidemic in April forced many
international investment banks to downgrade their forecast of
China's GDP growth. The Asian Development Bank's forecast of
China's growth rate dropped from 7.5 percent at the beginning of
year to 7.3 percent at the end of April.
But the ADB says it will most likely readjust the figure due to the
effective measures the Chinese government has taken and the
rebounding economy in the post－SARS period.
Meanwhile, a recent report from the State Statistics Bureau shows
that in the first five months of this year, the number of the
government's newly－approved foreign－funded
companies has reached nearly 16,000, a 30 percent increase from the
same period last year. Contracted foreign capital totaled 38
billion US dollars, up 42 percent.
Yao Jingyuan, spokesman of the State Statistics Bureau, said, "The
global business and financial circles are still quite optimistic
about China's economic development despite the negative impact of
SARS. China is still one of the most favored countries for foreign
investors."
For the US－based retailing giant Wal-Mart, preparations
have been in full swing for the opening of its first
mega－market in the Chinese capital, even during the most
critical months of the fight against the epidemic.
Wal-Mart is just one of the many examples of foreign companies who
stuck to their investment plans despite the SARS outbreak. Experts
explain it is because of the ever－increasing capability
of the Chinese economy to deal with contingencies that has led to
the increased confidence of foreign investors.
(cctv.com June 30, 2003)
