Asia Times: China launches two-way investment strategy


	September 13, 2001	atimes.com

China

China launches two-way investment strategy

XIAMEN, China - The Chinese government has officially announced the launch of a two-way investment strategy as a prelude to all-round integration into the global economy.

China will encourage competitive enterprises to "go global" by investing abroad, said Chinese Vice Premier Wu Bangguo in an address at the opening ceremony of the 2001 Investment and Trade Fair in the port city of Xiamen in southeast China's Fujian Province.

Wu pointed out that the outbound investment strategy will be integrated with the continuous effort to promote foreign capital inflow to boost China's overall involvement in global economic cooperation.

Officials from the Ministry of Foreign Trade and Economic Cooperation [MOFTEC] and the State Economic and Trade Commission took various occasions at the ongoing fair to publicize the new strategy to international participants. They said it was an important decision made by the Chinese government in order to meet the demands of international and domestic situations as well as China's economic development.

Chinese economic experts at the fair said the strategy was necessary so that China could adjust its economy in line with the trends of economic globalization, accelerated restructuring of the global economy, quick changes in technological upgrading, and an intensified round of international competition. The strategy would make full use of opportunities brought by China's anticipated accession into the World Trade Organization.

At the fair, government officials and businessmen conducted 12 bilateral investment policy and environment seminars with trade and investment representatives from some 30 countries and regions in the world. Sources at the meetings reported that as China has become a greater economic power, a batch of industry leaders with international brand competitiveness have emerged from the light industry, textile, household appliance and machinery sectors. These companies are able to go into the global market to secure broader space for structural adjustment and optimal allocation of resources.

Some Chinese companies already have some experience in exploring foreign markets in Asian, African and Latin American countries and regions. By the end of June this year, Chinese companies had set up 6,439 firms in some 160 countries and regions. Contractual investment in the projects amounted to US$11.6 billion, with the Chinese side agreeing to fund US$7.7 billion.

(Asia Pulse/XIC)