Investment Updates News
- Service sector welcomes foreign investors
Date: 19-Nov-2007 Sources: (Shenzhen Daily)
THE government plans to attract more foreign investment in the service industries, with a particular emphasis on outsourcing, domestic media reported Sunday.
China's move to gradually reduce barriers to foreign investments in the service business is part of a broader strategy to go for more eco-friendly and less wasteful 'quality investment,' the Xinhua news agency said.
'The point (of the transformation) is to absorb advanced technologies and management skills from foreign countries,' said Zhang Mao, vice minister of the National Development and Reform Commission.
'Foreign investment companies are expected play a positive role in this regard,' he was quoted as telling a forum in Beijing.
He was not quoted as giving any details about which service industries would be opened up to more foreign participation.
But Assistant Commerce Minister Chong Quan, speaking at the same event, said China encouraged multinationals to expand into outsourcing services.
He said his ministry had named 10 cities where 'conditions are mature' for outsourcing services, including Beijing and Shanghai.
The vice minister told a multinational CEO roundtable Saturday that foreign investment would be encouraged to enter high-tech, equipment and new material manufacturing and logistics. The central and western hinterlands are open for foreign investment with more incentives.
But he stressed that foreign investors were restricted from setting up businesses for export only in China and banned from creating polluting projects and those relying on consuming too much energy and resources, Zhang said.
Foreign direct investment into China hit US$6.8 billion in October, up 13.2 percent from the same month a year ago, the government said last week.
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