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China attracts US$665 billion foreign funds

(Xinhua)
Updated: 2006-11-10 09:40

As of the end of September, China had lured an accumulated 665 billion U.S. dollars of foreign funds, according to the Ministry of Commerce figures.

China has been the biggest recipient of foreign direct investment (FDI) among the developing countries for 15 straight years, said Wang Chao, assistant minister of Commerce, on Thursday.

Foreign investors come from about 200 countries and regions worldwide and include 480 of the global top 500 corporations, Wang told the Dialogue Meeting between the Private Enterprises and Fortune Global 500 Companies, held in Wenzhou City of East China's Zhejiang Province on Thursday.

Multinational corporations and private enterprises are two important forces behind China's fast economic growth, and the two forces should seek more and better chances for cooperation and achieve mutual benefit, Wang said.

To meet the demand of China's national development and industrial structure adjustment, the Ministry of Commerce and the National Development and Reform Commission are adjusting investment guidance for foreign investors, said Li Zhiqun, head of the foreign investment management department of the Ministry of Commerce.

The new guidance would encourage foreign investors to pour more funds in the high-tech, advanced manufacturing, energy-saving and environmental protection, modern agriculture and service industry, and to upgrade traditional industries, Li said.

Multinational corporations are also encouraged to set up regional headquarters, research and development centers, purchasing bases, logistics and training centers in China, Li said.

Big names such as Coca Cola, Motorola, Sony and Siemens and a group of leading Chinese private businesses such as Aokang Group and Kangnai Group attended Thursday's meeting.

Since China adopted a reform and opening up policy 28 years ago, foreign investment has contributed a lot to the country's economic development. Currently, about 280,000 foreign-funded enterprises contribute 27 percent of China's total industrial output value, 57 percent of China's exports and employ 10 percent of China's total employees.

The number of China's private businesses had increased from 80,951 in 2000 to 181,727 last year. The added industrial value of private businesses rose from 552.7 billion yuan (about 70 billion U.S. dollars) in 2000 to 2.13 trillion yuan (267.3 billion U.S. dollars) last year.

Private businesses made up 50 percent of China's total GDP by end of last year, according to All-China Federation of Industry and Commerce.


(For more biz stories, please visit Industry Updates)



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