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China is expected to maintain the momentum in wooing overseas funds, agreed economists attending the ongoing international High-tech Expo held in Beijing.

Zhang Hanya, secretary-general of the China Investment Association, said that in the past 20 years, overseas investment has always been an important driving force in China's economic development. In 2002, China ranked first in the world in attracting overseas investment. Despite the impact of severe acuterespiratory syndrome (SARS) in spring, China still made great progress in this respect, he said.

Latest statistics from the Ministry of Commerce show that in the first seven months this year, foreign direct investment in thecountry was 33.35 billion US dollars, up 26.63 percent over the corresponding period last year. China is expected to use foreign funds of 60 million US dollars in real terms for the year.

Lin Zongtang, president of the China Industrial Economic Federation, said that several factors will support the growth of foreign investment.

According to Lin, China will gradually open its banking, telecommunications, trade and tourism sectors to foreign investment and encourage overseas business to join in the restructure of China's state-owned companies. These policies will provide foreign investors huge opportunities to enter China, he said.

More foreign investors have noticed the great potential to develop in China. According to China's policy, they are encouragedto invest in agriculture, manufacturing, and high-tech industries.

China welcomes foreign companies to set up research institutes,manufacturing bases, technological development bases and regional headquarters. They can take various channels to cooperate with their Chinese counterparts in technical upgrading or development of key technologies.

Investors' enthusiasm in China could be easily witnessed at theexpo. Investors from all over the world have brought more than 3,000 investment plans to the expo, according to He Hualong, vice-chairman of the China International Economic and Technological Cooperative and Promotion Association.

"It has become an agreed concept for those investors with perspicacity to seize Chinese market, " said He.

Currently, more than 400 out of the top 500 multinationals haveset up companies in China. By July 2003, China had approved set upof 446,441 overseas-funded companies, backed up by contractual overseas funds of 887.2 billion US dollars, or 481.3 billion US dollars in real term.

Economists agreed that with the entry into the World Trade Organization (WTO), China will speed up its reform and opening up.Improved legal system and mature market mechanism will provide a better environment for overseas investors.

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