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Private firms encouraged to invest overseas
By Qin Chuan (China Daily)
Updated: 2004-07-07 01:30

The newly-signed South-South Co-operation project is expected to give Chinese private enterprises a helping hand in investing in developing nations.

The South-South co-operation effort among developing countries -- most of which are located in the southern part of the globe -- is assisted by the United Nations Development Programme (UNDP). It was officially launched in Beijing Tuesday.

It aims to support China's efforts in promoting South-South collaboration in globalization and regional economic integration.

Khalid Malik, UN China resident co-ordinator and UNDP resident representative, said the project will scale up China's South-South investment efforts through capacity building, networking and public-private partnerships.

Enterprises that want to invest in developing countries, especially African ones, will get special help, said Vice Minister of Commerce Wei Jianguo.

They will gain access to basic information about destination countries, receive support from governments, and enjoy preferential policies in loans and other areas, he said.

The US$1.6 million three-year project will be implemented by the China International Centre for Economic and Technical Exchanges.

Wang Yue, director general of the centre and Khalid Malik jointly signed the project document Tuesday.

China attaches great importance to South-South Co-operation, believing that developing countries can draw lessons and experience from one another with mutual benefit and support, he said.

The Chinese Government has decided to donate US$400,000 to the UN's trust fund for South-South co-operation annually.

Wei said the sum will increase gradually as needed.

Last year, China organized more than 50 training classes in various fields for professionals from developing countries. About 1,300 people from some 100 countries were invited.

The country plans to train 10,000 professionals from African countries in the next three years, he said.

And trade volume between China and African countries will be expanded, Wei said, from the current US$10 billion to US$30 billion in one or two years and US$50 billion in the near future.

The UNDP support for the South-South Co-operation programme in China began as soon as UNDP commenced operations in China in 25 years ago.

A total of US$13.33 million of UNDP's core resources had been spent or committed to such initiatives by the end of last year.

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