China Business

Aug 10, 2006

Bid for foreign investment in high-tech sector

BEIJING - China's Commerce Ministry wants more foreign capital pumped into research and development and hopes foreigners will look to the country's central and western regions for investment opportunities.

The Chinese government welcomes foreign investment in manufacturing, agriculture and environmental protection, which produce high value-added products, but consume less energy, the ministry said.

Investments will be curbed in sectors that consume excessive energy and those that cause serious pollution, according to the ministry. It said foreign investment will be discouraged in

industries where there is already a supply glut.

The Chinese government encourages foreign companies to set up new regional headquarters and research and development centers in China, the report said. The ministry also called for more foreign capital to go west, to allow central and northeast China to enjoy the benefits of investment. Greater market access will be made available in these regions for foreign investors.

Foreigners have invested more than US$650 billion in China since the late 1970s. Some 470 of the world's top 500 companies from 200 countries and regions have invested in China. More than 750 foreign-invested research and development centers have been established in China.

A survey by the United Nations shows China will remain the most attractive nation for multinational investment over the next couple of years.

(Asia Pulse/XIC)

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