China could best use foreign direct investment (FDI) as a tool to spread new ideas, new technology and new experience, said a research fellow of the business school of the Beijing Normal University Saturday.

When foreign funds flow into a country's economy, local companies are educated and thus benefit in several ways, said Li Ping. Overseas investors bring new technologies, and offer top technical support to their local customers, giving local employees and managers a chance to learn the expertise.

Most importantly, if local companies want to win out over foreign-funded companies, they have to improve their business management, which is crucial for the development of Chinese businesses, Li said.

Latest statistics from China's Ministry of Commerce (MOC) showed that China received FDI of 57.7 billion in the first 11 months of this year and will definitely exceed 60 billion at the end of this year.

With China successfully in the World Trade Organization in 2001and the further development of economic globalization, foreign businesses will increase investment in the Chinese market.

China will introduce the investment into high technology and value-added sectors, Li said. Introducing more FDI into the sectors will help solve the bottlenecks of domestic investment and business risks and further optimize the industrial structure and education for new technologies, an official with MOC's department of foreign investment said.

The official vowed that China would "seize the opportunity" to improve the sectors' development and upgrade industrial technology.

China began introducing foreign investment when it adopted the reform and opening-up policy in the late 1970s. Foreign funds have mainly poured into the labor intensive and small-sized projects.

Source: Xinhua