The result of the meeting of the Standing Committee of the State Council on December 30, 2009 will be to facilitate foreign investment in 2010. In the year 2010, the foreign investment field will continue to be enlarged and high-tech manufacturing, high-tech industries, modern services, new energy, and environmental protection will be encouraged. In the meantime, with respect to the utilization of foreign investment, the Government set forth five requirements, emphasizing the following goals: optimizing the structure of foreign investment and best utilizing the same; encouraging foreign investment into new high-tech technologies, modern services and environmental protection industries; guiding and increasing foreign investment in the mid-west areas; strengthening the support for technical elements in foreign investments in the mid-west areas; promoting diversification of foreign investments; encouraging foreign investments to participate in the restructuring of domestic companies by means of merger and acquisition; expanding financing channels for foreign companies in China; strengthening credit and loan support for foreign investors; deepening reform of foreign investment administration; liquidating items to be ratified concerning foreign investments; narrowing the scope of examination and ratification and increasing its transparency; forming a friendly environment for foreign investments; accelerating the development of special zones; and simplifying the formalities necessary for exchange settlement.

In addition, at the National Meeting of Commerce, with respect to opening the modern service industry and diversifying the means for utilizing foreign investments, Mr. Chen Deming, the Director of the Ministry of Commerce, further mentioned that more service industries will be opened for foreign investment, such as medical treatment and sanitation, and education and training; He also proposed that domestic listing should be permitted to certain qualified foreign investors.

The foresaid meetings all pointed out that utilizing foreign investments is an important element of China’s fundamental open-door policy and that foreign investors have already been a significant component of China’s national economy. In this circumstance, China should sufficiently exert its comparative advantages when facing the world economic crisis and keep a smoothly developing economy so as to create a more open and optimized environment for foreign investments, to best utilize foreign investments, and to better exert the positive effects of foreign investments with respect to promoting technological innovation, industry upgrade and regional coordination.

Source from: www.gov.cn; Economic Information Daily; www.xinhua.com.cn