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Foreign investment up 14%

By Diao Ying (China Daily)
Updated: 2007-12-14 07:05

The nation received $61.67 billion of foreign capital for the first 11 months this year, up 13.66 percent compared with the same period last year, the commerce ministry said Thursday.

The government approved over 34,000 foreign-invested enterprises during the same period, down by 7.02 percent.

China adjusted its foreign investment policy at the beginning of this month.

Under new guidelines, China will further open the service and hi-tech industries and tighten the control on energy-consuming sectors.

A new directive for the first time allows foreign investment in the futures market, grid construction and operation. It also encourages foreign capital in service outsourcing and logistics sectors.

China will continue to provide favorable tax policies to encourage foreign investment in certain sectors, Vice-Minister of Commerce Ma Xiuhong, said.

"China will keep its foreign investment policy stable and continuous," Ma said.

"So that foreign investment will continue to play an active role in China's innovation, help upgrade industries and boost the development of different regions."

However, foreign investment in some export-driven industries will no longer be encouraged under the new policy, according to a spokesman for the National Development and Reform Commission (NDRC).

"We will no longer run the export-driven policies as we are faced with new situations such as a tremendous trade surplus and fast increase in foreign reserves," the NDRC spokesman said Thursday.

High profile government officials recently reiterated China's policy of opening up to foreign investment. Vice-Premier Wu Yi said earlier this week that China would not change its stance in expanding the use of foreign capital.

"China's door has been and will be resolutely open to the outside world," she said during the opening ceremony of the 18th Sino-US Joint Commission on Commerce and Trade, on Tuesday.

China received $69 billion in foreign direct investment in 2006.

It was the world's third-largest FDI recipient after the US and UK, according to a report by the United Nations Conference on Trade and Development.