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Gov't to guide flow of capital

By Jiang Wei (China Daily)
Updated: 2007-02-27 08:55

The Chinese government will optimize foreign investment inflow to the country to offset any negative impact from policy adjustments, according to a senior commerce official.

"We will encourage foreign investment to industries involved in high-tech, modern services and high-end manufacturing," said Li Zhiqun, director of the commerce ministry's Foreign Investment Department.

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He added China will also encourage foreign investors to move from the nation's coastal to central and western regions.

He said the ministry would accelerate plans to publish foreign investment guidelines this year. The information will encourage foreign investors to look at high-tech industries, advanced manufacturing and modern services when investing in China, as well as set up research and development centers in the country.

Meanwhile, an unnamed finance ministry official was quoted by Xinhua News Agency as saying China will use import and exporttariffs to guide foreign capital inflows.

New policies will be launched this year, with import tariffs to be used to guide foreign capital flows into the high-tech, agricultural and manufacturing sectors, the official said.