During the Tenth Five Year Plan period, China’s opening-up was fully embraced by international economic cooperation and competition since its WTO entry. China also made progress in utilizing foreign investment. Foreign investment of $383 billion was actually used, far exceeding the total value during the Ninth Five Year Plan, including about $286 billion as foreign direct investment (FDI), $38 billion collected by issuing stocks overseas, about $46 billion as loans.
The basic reason that the introduction of foreign investment by China obtained great success lies in that China provides all the investors in the world with excellent environment for investment, production and operation.
The environment of Chinese macroeconomy being improved day by day and the utilization of foreign investment having obtained significant achievements during the tenth five-year plan.
Foreign investment scale is enlarging with more investment modes. China has become a favorable investment destiny for foreign capital and multinationals. China successfully took over the new-round international manufacturing industry. During the Tenth Five Year Plan period, China seized the opportunity of manufacturing restructuring and global shrift and attracted a great deal of FDI, preliminarily making China an important production base in the world. Capital and technology intensive industries attracted much more foreign investment; a number of large foreign investment projects were launched during the Tenth Five Year after years of preparation. Foreign invested corporations set up good examples in introducing and applying advanced technology, management and concept, pushing market and global oriented development of China’s economy and enterprises, and successfully nurturing some industries with international competitiveness in the fields of electronic and information, integrated circuits, light industry and textile, electric appliance and general machinery products.
With the entirely implementation of China’s WTO commitments, apparent progress has been made in the service industry in the opening up.
Foreign loans increased steadily, which effectively supported construction of key projects of the state.
The regulations and policies on foreign capital utilization have been improved constantly, and the management level has been advanced gradually.
The hard environment for foreign investments that has been improved obviously providing foreign investors with basic guarantees.
China has abundant resources, beautiful environment and amiable climate, which is suitable for foreign investments with various types and various scales. The area of Chinese land is more than 9,600,000 sq. km., which is only next to Russia and Canada. The climate is characteristic in both continental monsoon climate and complicated climate. From the south to the north, it covers equatorial zone, tropical zone, subtropical zone, warm temperate zone, temperate zone, and cold temperate zone. The regional natural conditions differ greatly and the variety is obvious.
Chinese Government will further perfect the environment for investment in the future.
1.Continuously strengthening the soft environmental elements of investment.
2. The element quality of macro-economy should be improved and the opening degree of the market should be expanded further.
3. The hard environmental elements for investments should be improved further. The improvement of Chinese hard environmental elements for investments has already obtained important progress.