Economy

China needs foreign firms in economic transformation

(Xinhua)
Updated: 2011-03-21 10:33

BEIJING - China's commerce minister said on Sunday that foreign invested enterprises (FIEs) have a more active role to play in the process of China's economic transformation.

"China's efforts to transform its economic development model and expand domestic demand are not closed to FIEs, rather, we need FIEs to play a more active role," said Chen Deming, China's commerce minister.

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It is only for fair market competition that China has rescinded some preferential policies for FIEs and set a uniform taxation rate for domestic firms and FIEs, said Chen during the 12th China Development Forum.

"The policies designed to encourage innovation in China are applicable to all enterprises running business in China, including the FIEs," he said.

China's publication in early March of the rules governing foreign takeovers of Chinese companies was in line with international standards and would result in no additional administrative procedures, he said.

"In government procurement, the Chinese government would continue to follow an open and transparent policy to grant completely equal treatment to Chinese and foreign firms," said Chen.

Chen also called upon some countries to offer Chinese enterprises equal market access and protect their legitimate interest and rights.