An article published Monday in China's leading
newspaper the People's Daily says that actively making use of foreign capital is
one of the most important signs indicating China's fast economic development.
The author of the article says that by the end of 2006, China had absorbed
over US$685 billion of foreign investment, marking again as Number One in
attracting the most foreign capital among developing countries for 15
consecutive years.
The article says the capital brought by foreign enterprises has been well
integrated with the abundant labor force in China, making China's reforms in
state-owned enterprises and their technological progress possible all these
years.
The article also says that market competition that has been made possible by
foreign capital inflows has also become a driving force for the development of
SOEs.
According to the article, the export volume of foreign invested companies
accounted for 58 percent of China's overall export volume in 2006. Over 30
million people are employed by foreign enterprises, accounting for 10 percent of
the total urban work force.
Foreign enterprises also receive huge economic returns from their investment
in China. During the 1990 to 2006 period, the profits the foreign investors
remitted out of China had amounted to over 314 billion US dollars.
