Monopoly News
- Foreign firms do not have monopoly in any sector'
Date: 11-Sep-2007 Sources: (Shenzhen Daily)
THE country does not face an imminent risk of monopoly by foreign companies in any industry, according to the China Foreign Investment Report 2007 released by the Ministry of Commerce.
Wang Zhile, director of the Multinational Enterprise Research Center affiliated to the ministry, made the observation Sunday in response to people's rising concerns about possible foreign monopolies in the country.
He explained that although foreign investors do have a large market share in certain industries, it does not necessarily mean monopolies.
The market share is usually held by different foreign-funded enterprises that compete with each other and those who have a large share do not use it to restrain competition in the market, which is the nature of a monopoly.
China had approved the establishment of more than 610,000 overseas-funded companies by the end of July, with actual use of overseas investment totaling US$720 billion, a Ministry of Commerce official was quoted as saying by Xinhua on Sunday.
In a related development, Zhou Xiaochuan, governor of the People's Bank of China, said Saturday that the country is likely to adjust its financial polices to support Chinese companies' outbound investment.
Revisions will be made to the current foreign exchange policies that encourage currency inflows while limiting outflows, he said.
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