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China encourages enterprises to invest overseas
(Xinhua)
Updated: 2004-06-03 14:34

China will spare no efforts to support its enterprises to invest overseas, said Peng Nanfeng, an official of the Department of Foreign Economic Cooperation of the Ministry of Commerce, in Qingdao Wednesday.

Peng made the remarks at the Third APEC Medium and Small Enterprises Technology Conference being held in Qingdao, East China's Shandong Province.

"Investment overseas has become a major way for Chinese enterprises to participate in global economic competition since China began to adopt an open-up policy over 20 years ago," said Peng.

"Especially after 1999, when the Chinese government changed its restrained attitude toward overseas investment and adopted an encouragement, instruction and supervision policy, China's enterprises saw a sharp increase of its overseas investment," said Peng.

According to statistics, by the end of 2003, the number of China's enterprises approved by the Ministry of Commerce to invest overseas had reached 7,470, and the contracted investment of the Chinese side rose to US$11.43 billion.

Among them, the number of processing enterprises is 489 with an investment of US$1.307 billion.

"It will promote an export volume of US$2.6 billion of software, raw materials and spare parts," said Peng.

In the 1980s, the goal of China's investment is mainly developed regions such as the United States, Europe and Japan.

"But now the area has been enlarged to 168 countries and regions including developing countries in Asia, Africa and Latin America," said Peng.

And the investment fields have been extended from shipping and catering in the early period to processing, manufacturing, resource utilization, contract for projects and research and development, said Peng.

"To encourage China's enterprises to invest overseas, the Chinese government has issued a series of favorable policies in finance, taxation and administrative examination and authorization," said Peng.

According to Peng, to strengthen administration of enterprises investing overseas, the Ministry of Commerce has established records of all those enterprises.

Moreover, an annual check and appraisal of enterprises investing overseas is being carried out in China, as the appraisal results will be taken as the bases for the government to adjust its policies for China's enterprises to invest overseas, said Peng.

"Future overseas investment of China's enterprises will develop harmoniously with the development of China's export and foreign investment introduction. And it will develop a close relationship with the field of trade, contract for projects and cooperation in labor services," said Peng.

"All of these will be important preconditions for China's enterprises to increase their competitive strength," said Peng.

Sponsored by the State Development and Reform Commission, the Third APEC Medium and Small Enterprises Technology Conference opened on Wednesday and will last for three days. Its aim is to strengthen cooperation and communications among medium and small enterprises in the Asia and Pacific Economic Cooperation.

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