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State Stresses Foreign Funding
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China will sharpen the country's international competitive edge through the better utilization of foreign capital, said a white paper issued over the weekend.

Such efforts include mergers and acquisitions, investment funds and securities investment in an effort to attract medium and long-term overseas investment, according to the government's white paper on economic development.

The annual white paper was written by officials and research staff at the State Development Planning Commission.

Efforts should be made to attract multinational companies to invest, set up research and development centres, and participate in the restructuring and regrouping of state-owned enterprises in China, the paper said.

The white paper - entitled "Report on China's National Economic and Social Development for 2002" - contains the government's major policies and strategies for economic and social development.

On the main objectives and tasks for 2002, the government stressed that to sustain relatively fast economic development, it is imperative to make strategic readjustments to the country's economic structure by focusing on improving economic efficiency.

"Development must be the theme. If there is no economic development, there is no sustainable enhancement of international competitiveness and living standards of all the people," said the report.

On strengthening agriculture's primary position, the report gives special emphasis to speeding up the reform of the taxation system in rural areas. It said that the number of government staff in towns must be cut and that taxes and fees on farmers must be reduced.

On the strategy for infrastructure construction and resources, the report stressed the importance of handling the issue of water conservation from a strategic perspective.

The government will continuously implement preferential policies to support the country's strategy of opening up the western regions, which includes stepping up financial support for and encouraging enterprises at home and abroad to invest in the regions.

In reviewing its economic and social development achievements of 2001, the government said China has greatly increased its forces of production and improved people's living standards. Last year, China's economic growth rate was 7.3 percent, and the target for this year is 7 percent.

(China Daily June 3, 2002)

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