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Investment from abroad welcomed
( 2003-11-07 08:52) (China Daily)

China is seeking innovative ways to absorb more foreign investment, according to Vice-Premier Wu Yi.

"We will also encourage foreign investors to participate in China's regional economic integration,'' Wu said when delivering a keynote speech at the opening ceremony of the two-day World Economic Development Declaration Conference (WEDDC).

The two-day WEDDC released the first worldwide declaration in the economic field, jointly authored by seven Nobel laureates and six Chinese economists. The declaration is expected to push the global economy in the long run by raising a set of general economic principles to adhere to.

Wu promised China will continue to push forward the opening of China's service sector.

The nation has already allowed the setup of wholly foreign-owned procurement centres in Shenzhen, Shanghai and Tianjin on a trial basis, which Wu said was an attempt to cater to the development of the logistics industry and the global purchasing needs of multinationals, while highlighting China's advantages in the processing industry.

Following this latest effort, China will keep the exploration of new investment areas as focus during its opening-up drive, Wu said.

China has already formulated policies and legal regulations to allow overseas investors to pour investment by means of acquisitions and other measures.

Overseas enterprises also have the opportunity to go public in China, participate in the restructuring of State-owned enterprises and become involved in the handling of non-performing assets.

Besides these areas, the new round of regional economic integration in China offers many opportunities for foreign investors, Wu said.

China will amend regulations to encourage foreign-funded companies in the east to invest in the central and western areas.

Foreign investors will benefit from the industrial upgrading in the Yangtze River Delta and Pearl River Delta, she said.

The reviving of the old industrial base in the northeastern part of China, especially the restructuring of State-owned enterprises, will also provide new space for foreign investors, she said.

China's plan to build a well-off society by 2020 will not only benefit Chinese people, but also spur the economic growth of neighbouring countries and play a positive role in global economic development, Wu said.

Under such a plan, China's GDP in 2020 will quadruple that of 2000, and is expected to reach US$4 trillion while China's total trade volume at that time will also quadruple, predicted to hit US$2 trillion.

Wu said that despite the negative impact of severe acute respiratory syndrome (SARS), China's national economy has still maintained a good development trend, according to Wu.

The goal of 7 per cent growth in China's GDP this year can be realistically accomplished, she said.

Statistics show that during the first three quarters of this year, China's GDP increased by 8.5 per cent year-on-year, financial income rose by 22.5 per cent, and the total trade volume surged by 36.2 per cent.

   
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