The government recently released a series of policies regulating foreign investment in China. Some economists say that these latest regulations will only necessitate slight adjustments, and that China will not change its policy regarding the introduction of foreign investment. Regular investment in China will not be affected, but it will benefit from the policy change.

Specialists say that all countries restrict their sensitive industries. Even developed countries like the United States have an investment appraisal committee, which restricts foreign investment if the White House believes it will jeopardize domestic industries. Therefore, it is unlikely that small changes to foreign investment policy will have a big effect.

Countries with mature market economies deal fairly with their investment both at home and abroad. Poorer countries are the other way around. According to WTO��regulations, which are now applicable to China, it is appropriate to cancel preferential policy for foreign investment where it gains an advantage over domestic industry. China provides a fairly competitive environment for both domestic and foreign enterprises.

Specialists believe there are two issues in foreign investment policy that need consideration. Firstly, China's market economy needs regulation, and China should not always give preference to foreign investment. Secondly, China needs to be more open. China welcomes qualified investment with a competitive edge.

Generally China provides a fair, competitive business environment for both local and foreign enterprises.

By People's Daily Online