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New policy stresses quality of foreign investment

(Xinhua)
Updated: 2006-11-10 14:14

The document stresses the need for more foreign investments in areas such as research and development as well as sophisticated design, so that China could eventually become a major manufacturer of high value-added products.

It also calls for more foreign investment in China's remote west and the northeast rust belt, which are currently lagging far behind the coastal regions in the amount of foreign investment.

Despite the stress on quality, the document says China expects its foreign investment to keep rising in the next few years.

"During the 11th five-year-plan period, the domestic and international environment affecting foreign investment in China will generally tend to improve, making it possible for China to improve the quality of foreign investment while maintaining quantity," the document says.

According to the document, China will continue to encourage foreign investment in agriculture, electronics and information, petrochemicals, chemicals, automobiles and infrastructure.

Foreign businesses will be encouraged to take part in the restructuring of traditional industries such as machinery, light industry, textiles, raw materials and construction.

Foreign investment in environment protection, including the control of water and air pollution and recycling, will be welcomed, the document says.

In the service sector, the document says China will fulfill its duties under the World Trade Organization and open its banking, insurance, securities and telecommunications sectors to foreign investment in a positive and prudent manner.

In response to the rising concern over foreign acquisitions of leading Chinese firms in critical sectors, the document says China will speed up legislation and step up the supervision of sensitive acquisitions and takeovers to ensure critical industries and enterprises remain under Chinese control.


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