Home · Weather · Forum · Learning Chinese · Jobs · Shopping
Search This Site
China | International | Business | Government | Environment | Olympics/Sports | Travel/Living in China | Culture/Entertainment | Books & Magazines | Health
Home / Top News Tools: Save | Print | E-mail | Most Read | Comment
No Threat of Foreign Monopoly in Any Industry: Report
Adjust font size:

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 of Commerce, made the observation in an essay for the report 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 yesterday.

The report was released in Xiamen, Fujian Province, yesterday during the China International Fair for Investment and Trade (CIFIT) along with a series of booklets introducing Chinese provinces and cities to potential foreign investors, and guidelines for Chinese enterprises' outward investment.

Policy Revisions

In a related development, Zhou Xiaochuan, governor of the People's Bank of China, told the main CIFIT forum on 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.

The central bank will further develop the foreign-exchange market to help companies hedge currency risks and simplify procedures for companies investing outside.

"We will remove unnecessary controls on reviewing sources of foreign-exchange funds and on foreign currency purchase and remittance procedures to allow companies to use their own funds or converted currencies to invest abroad," Zhou said.

The government also encourages qualified commercial banks to set foot abroad by establishing branches or acquiring stakes in overseas counterparts, he said.

(China Daily September 10, 2007)

Tools: Save | Print | E-mail | Most Read

Username   Password   Anonymous
China Archives
Related >>
- Policy Changes to Back Outbound Investment
- Official Warns of Monopolies by Foreign Companies
Most Viewed >>
-China set to hit the brakes on rising yuan
-Power to resume shortly in worst-hit area by snow
-Macao's gaming market expands further
-Online operators are on top of the game
-Insurance firms set to stump up billions

May 15-17, Shanghai Women's Forum Asia
Dec. 12-13 Beijing China-US Strategic Economic Dialogue
Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?
SiteMap | About Us | RSS | Newsletter | Feedback

Copyright © All Rights Reserved E-mail: Tel: 86-10-88828000 京ICP证 040089号