- structured settlements
Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone
THE commerce ministry expects foreign countries to be more open to Chinese investors while reiterating China does not want the US currency bill to become a law as it may spark a trade war.
“Some countries say they welcome Chinese investment, but their security screening system is very opaque — even a small bolt factory is considered ‘threatening national security’,” Commerce Minister Chen Deming was quoted saying by the People’s Daily today. “Although Chinese investors do wish to go global, they are facing big challenges including investment protectionism, the global financial crisis and regional political unrest.”
Chen said the Chinese government still encouraged its enterprises to invest outside of China against such a backdrop, stressing Chinese companies should obey laws and respect others’ culture and tradition.
China’s non-financial outbound foreign direct investment increased 12.5 percent year-on-year in the first three quarters to US$40.7 billion, far slower from the pace of 34 percent in the first half of this year, according to the Ministry of Commerce.
Also, China opposes the United States currency bill and Chen said China’s yuan exchange rate was within a “basically reasonable level.”
“Currency is not the root cause of a trade imbalance between China and the US,” Chen said. “Many American manufacturers produce in China, and then ‘export’ their products back to the US, which creates a huge gap on the two countries’ trade balance sheet.”
Also, China showed an overall trade balance with other countries — that means it is not a result of an exchange rate issue. Last year, most of the trade surplus in China was linked to trade with the US, among which 75 percent came from foreign-investment firms, Chen said.
China’s trade surplus shrank by 15 percent annually in the first ten months, while bilateral trade still jumped by more than 24 percent. Chen expected the whole year’s trade surplus to show a notable reduction from a year earlier. – Shanghai Daily