New policy stresses quality of foreign investment
(Xinhua)Updated: 2006-11-10 14:14
China on Thursday published its 11th Five-Year Program (2006-2010) for utilizing foreign investment, which says the priority of policy will be given to the quality rather than quantity of such investments.
The National Development and Reform Commission published the document on its website, the first time such a document has been published.
"This is an important measure taken by China in creating a stable and transparent foreign investment management system as well as a fair and predictable policy environment," the NDRC said.
According to the document, China utilized 383 billion U.S. dollars of overseas investment during the 10th five-year plan period (2001-2005), including 286 billion dollars in overseas direct investment, 38 billion dollars in stock issuances and 46 billion dollars in foreign loans.
It criticizes some local governments for their blind seeking of foreign investments, some of which are apparently against the central government's industrial policy.
The document notes that emerging monopolies by foreign businesses in certain industries are posing a potential threat to China's economic security.
It also criticizes foreign businesses for abusing intellectual property right protection laws, adding that this has adversely affected Chinese enterprises' capacity for independent innovations.
The document says China will push for further shifting of policy priority from the quantity to the quality of foreign investment during the next five years.
Priority shall be given to the introduction of advanced technologies, management expertise and high-quality talents, rather than the use of foreign capital, the document says.
More emphasis shall also be given to the protection of environment and
efficient use of natural resources, it says.
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