Beijing, (Xinhua) -- During the 11th Five-Year Plan period (2006-2010), China
will continue to actively and effectively utilize foreign funds, while taking
the initiative to resist and eliminate risks to national security.
This is stated in the country's program on using foreign funds in the period,
which was just formulated and issued by the National Development and Reform
Commission.
The program promotes a transformation from paying attention to "quantity" to
paying attention to "quality" in utilizing foreign funds during the period.
Emphasis will be placed on importing advanced technologies and experienced and
high-quality managing intellectuals instead of making up for the shortage of
capital and foreign exchanges.
More attention should be paid to construction of ecological balance,
environment protection, saving and comprehensively utilizing natural and energy
resources, thus integrating utilization of foreign funds with updating of
domestic industrial structure and raising of the technological level.
Efforts will be focused on direct foreign investment. It is necessary to
encourage foreign funds to take part in reorganization or transformation of
domestic enterprises in such forms as merging, share-purchasing or
re-investment. Except where related to national security, restrictions on
foreign holding companies will be gradually lifted.
Meanwhile it is necessary to step up the pace of formulating and promulgating
the Anti-Monopoly Law; give further details on the policies toward those
sensitive industries or major enterprises which are related to the national
safety, the national economy and people's livelihood; improve the
industry-access system for foreign funds; strengthen examination and supervision
of the merging cases which are related to the above-mentioned sensitive
industries or major enterprises and involved in foreign funds so as to secure
the state's control over the development of those strategic industries and major
enterprises; and revise and publish the Law on Enterprises' Income Taxation that
applies to both domestic and foreign funded enterprises.
Efforts will be made to optimize and upgrade the foreign-funded industrial
structure, encourage foreign investors to make contributions to the development
of China's modern agriculture with emphasis on development of ecological
agriculture and high-tech and high value-adding farming such as planting,
breeding, comprehensive utilization of agricultural waste, tapping of biological
energy, developing and manufacturing of modern farm machinery and equipment,
deep processing of farm produce, and importing of modern farming technologies
and managing systems.
Foreign businessmen will continue to be encouraged to invest in such
industries as electronic information, petro-chemicals, chemicals and
automobiles. They will be urged to take part in the reorganization and
transformation of the country's traditional industries including machinery,
light industry, textiles, raw materials, construction and building materials and
to invest in infrastructure facilities and environmentally-friendly projects,
especially ecological and environmental projects in central and western China.
Besides, it is important to actively and steadily spur service-trade sectors
such as banks, insurance, securities, telecommunications, commerce and freight
transport to open wider to the outside world.
Large multinational companies are encouraged to shift their high-tech and
high-value-adding processing and manufacturing sectors and their research and
development institutions to China, and to set up production and manufacture
bases, auxiliary bases and training bases so as to bring the effect of
technological overflow into play and enhance Chinese enterprises' own ability to
blaze new trails.
After being admitted into the World Trade Organization, China entered a new
stage featuring comprehensive international economic cooperation and competition
in utilizing foreign funds.
In the 10th Five-Year Plan period (2001-2005), China actually used a total of
about 383 billion U.S. dollars of foreign funds, 34 percent more than in the
Ninth Five-Year Plan period. The total includes 286 billion U.S. dollars of
direct overseas investment, 38 billion dollars of funds raised by Chinese
enterprises' listing abroad, and 46 billion dollars of overseas credit.
With State Council's approval, the program is drafted by the National
Development and Reform Commission after consulting with 40 units at the level of
ministries, 11 national industry associations, provincial governments throughout
the country, some research institutes, enterprises and scholars, according to
the preface of the program.
