China attracts more FDI during 1996-2000

Ulhas Joglekar ulhasj at SPAMbom4.vsnl.net.in
Sat Oct 7 06:22:28 MDT 2000


Saturday
7 October 2000

China attracts more FDI during 1996-2000
By Anil K Joseph
BEIJING: China has attracted a record US$ 230 billion in foreign direct
investment (FDI) from 1996 to 1999 and the figure is expected to top $290
billion in the ninth Five-Year Plan period (1996-2000), according to
official statistics released here on Friday.
"Foreign investment in China is expected to top $290 billion in the
five-year period, soaring by 80 per cent from the last Five-Year Plan
period," the State Development Planning Commission (SDPC) said, ahead of
next week's plenum of the ruling Communist Party which is expected to review
and okay China's 10th Five-Year Plan.
Foreign companies invested $184.5 billion in China from 1996 to 1999 and the
total investment from overseas companies in these five years will reach $230
billion, doubling from the last Five-Year Plan period.
Investment from foreign companies totalled $52.4 billion in 1997, the
highest in China's history.
The country received a total foreign loan of $46 billion from 1996 to 1999
and the foreign loan is expected to total $57 billion in these five years,
up 25 per cent over the last five -year plan period.
China's payment and debt rate remained 11.3 per cent and 69.5 per cent
respectively in 1999, both below the international warning line, the SDPC
said.
Turning to foreign-funded enterprises in China in he ninth Five-Year Plan
period, SDPC said the added value of overseas-funded enterprises accounted
for 20.7 per cent of the country's industrial added value in 1999, with a
growth rate higher than the nation-wide average level.
Foreign-funded enterprises paid 16 per cent of the country's tax revenue
last year, up 5 percentage points over 1995.
Overseas-funded enterprises contributed to 50.8 per cent of China's import
and export volume in 1999, rising from 39.1 per cent in 1995. Their export
volume accounted for 45.5 per cent of China's total.
More than 20 million people worked in foreign-funded enterprises in 1999,
accounting for 10 per cent of China's urban labour force.
Foreign trade has played an `active and important' role in supporting the
overall development of the Chinese economy in the ninth Five-Year Plan
period, according to official reports.
With China's further opening up to the outside world, both its trade in
products and raw materials and its service trade have increased rapidly.
In 1995 China was the 11th largest trader of products and raw materials in
the world. Last year it was 9th and the volume of trade had hit $36.06
billion in 1999 compared to that of $28.08 billion in 1995.
During the first seven months of this year, the volume of exports and
imports reached $16.6 billion and $12.16 billion respectively, and the total
trade volume for this year is expected to exceed $40 billion. (PTI)
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