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2.7% of China's GDP Growth Thanks to Foreign Funds
From 1980 to 1999 a yearly average of about 2.7 percent out of China's 9.7 percent GDP growth had come from direct or indirect foreign investment, according to China News Service reports.
Statistics from State Information Center tell that China's reform and opening up has made the country an attraction to overseas funds and absorbing most foreign investment in seven successive years. By the end of May 2001, investors from over 180 countries and regions have set up more than 370,000 enterprises in China, with a total contract value over US$700bn and US$363.6bn actually used.
So far, nearly 400 enterprises out of 500 world strong have set up their businesses in China. By the end of last year some 20m people had been employed in foreign-funded enterprises, or about 10 percent of urban labors across the country. This has greatly helped in speeding up economic growth, promoting development and utilization of human resources and a surplus of international revenue.
Experts say China has entered a new stage in which various methods are being used for making the most of foreign funds. This is especially so for things have taken a favorable turn since last year:
Diversified methods have been employed for using foreign funds and fund raising through overseas capital has been developed rapidly. Many enterprises, such as China Unicom, China Mobile, CNOOC and Sinopec all got listed overseas. Relevant departments and financial institutions also raised funds outside China.
Regional structure of foreign fund using began to improve, with 70 percent of international funds diverted to western and central regions.
Besides, a batch of competitive enterprises began to expand international markets using overseas resources, capital and technology.
By PD Online Staff Member Li Heng
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