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𩇕𩇕Actual foreign direct investment in China hit US$13.09 billion in the first quarter of this year, up 56.7 per cent from a year earlier, the Ministry of Commerce said Monday.

𩇕𩇕Contracted foreign investment, an indicator of future trends, rose 59.6 per cent year-on-year in January to March to US$22.98 billion, the ministry said.

𩇕𩇕The strong growth has continued from last year and is expected to last for quite some time, said analysts.

𩇕𩇕Despite dramatic cuts in the total amount of global cross-border investment, foreign capital inflow in China started to rise rapidly since last year.

𩇕𩇕China surpassed the United States as the world's largest foreign investment receiver last year, with an inflow of US$52.7 billion.

𩇕𩇕Low manufacturing cost are a major attraction for foreign investors. Harsher competition due to contracting international demand and the depressed global economy last year sharpened China's advantage, said Long Guoqiang, a researcher at the Development Research Centre under the State Council.

𩇕𩇕China's entry to the World Trade Organization (WTO) and the resulting improvements in the transparency and stability of Chinese laws, rules and policies have played a pivotal role in boosting foreign investors' confidence in the market, he said.

𩇕𩇕Continuous rapid economic growth and the country's bright prospects create abundant business opportunities for foreign companies.

𩇕𩇕But commerce ministry officials in charge of foreign investments said it was hard to predict how long the honeymoon between China and foreign investors was going to last.

𩇕𩇕Neighbouring countries are intensifying their efforts to attract foreign investments and sharpening their edges in terms of policies, labour cost and manufacture capability, they said.

𩇕𩇕China WTO Report 2003, an annual publication compiled by China Society for WTO Studies, urged the Chinese Government to improve its laws, rules and policies, especially the industry directory for foreign direct investments, to iron out problems for foreign investments.

𩇕𩇕It said the government should also pay much attention to the co-ordination between investment and trade policies, reform and adjust its means of managing foreign investments, diversify foreign entry modes and encourage foreign participation in restructuring State enterprises as well as the development of China's middle and west regions.

𩇕𩇕China has issued new temporary rules for mergers and acquisitions (M&As) between foreign and Chinese companies in the latest step to increase inflows of foreign investment.

𩇕𩇕A number of conditions were also set with the aimof protecting domestic industry from foreign players.

𩇕𩇕The rules, effective from April 12, were "aimed at promoting and regulating foreign investment in China and boosting the level of foreign capital utilization,'' said the Ministry of Commerce.

𩇕𩇕The rules were issued as China opens its economy to foreigners wider following its entry into the WTO in late 2001. The rules provide a formal framework that might make it easier for foreign firms to invest in China's corporate sector.


		琩𦾡/祇𣜭蝶階