As the SARS gradually fades, foreign investors still consider China
as a favorable investment destination.
Henry Paulson, Chairman of the prestigious American investment
institution Goldman Sachs, said, in his meeting with Chinese Vice
Premier Huang Ju, that China has won the world's respect and trust
in the global fight against the SARS. Moreover, with China's
successful entry into the World Trade Organization and its
improvement in policy transparency and continuity, foreign
investors see more business prospects to broaden their investment
portfolios.
The foreign entrepreneurs are striving to turn their optimistic
prophecy about China's economy into concrete investment
projects.
Last month, the heads of American giants Caterpillar Investment
Co., Ltd. and Motorola Electronic Co., Ltd. visited Beijing and
announced their respective massive investment plans.
Mike Zafirovski, president and chief operating officer of Motorola,
revealed that the company's total investment in China would reach
US$5 billion in the coming five years.
A
source from the China Securities Regulatory Commission, China's
securities watchdog, confirmed that Goldman Sachs is actively
applying for the QFII license which will permit it to invest in
China's domestic stock market.
China has authorized four foreign investment institutions as
Qualified Foreign Investment Institutions (QFII), a move expected
to inject billions of US dollars into its domestic stock market and
boost the country's economy.
A
recent national survey conducted on basic economic entities by
China's National Bureau of Statistics shows that the number of
foreign-financed enterprises witnessed a sharp increase during the
past years.
By
the end of 2001, 56,770 foreign-financed enterprises had been
established in China. With over 6.4 million employees and
registered capital of 1.21 trillion yuan (about US$150 billion),
these foreign enterprises have earned 204.5 billion yuan from their
business activities in China.
The survey also predicts that more foreign capital will be invested
in China's financial sectors, such as insurance and securities
sectors, in the coming years.
(Xinhua News Agency June 12, 2003)