China to use foreign capital to encourage innovation
(Xinhua)
Updated: 2006-10-11 21:33
China's Ministry of Commerce plans to change its strategy on foreign
investment in a bid to lure foreign capital through market forces rather than
administrative measures.
According to the 2006-2010 plan, China will favor foreign investment that is
technology-intensive, energy-efficient and able to create more job
opportunities, especially in the agriculture, advanced technology, environmental
protection and the service sectors.
It will also encourage foreign investors to establish joint ventures or
conduct other kinds of collaboration with local companies, especially private
firms.
Under the plan, policy disparity between domestic and foreign companies will
be gradually bridged.
A foreign investment monitoring system will be set up to defend industrial
safety, standardize foreign mergers and acquisitions, ensure foreign companies
fulfil their social responsibilities and guard the interests of local employees,
it said.
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