A Chinese senior economic planner has expressed concern that US investment policies are erecting barriers to Chinese investors securing stakes in American businesses.
Zhang Xiaoqiang is vice-minister of National Development and Reform Commission.
He said the US Foreign Investment Bill has tightened national security reviews of proposed foreign investment, especially in the energy and infrastructure sectors. It also requires a second-stage investigation of most proposed acquisitions by State-owned companies.
The bill was signed by President George W. Bush in July.
Zhang said, "Considering China's ownership structure and its overseas investment priorities, Chinese investors are faced with new uncertainties."
He will participate in the third China-US Strategic Economic Dialogue scheduled for today and tomorrow, he told China Daily.
He continued: "We hope US policies and regulations do not become barriers for Chinese investors."
Since the reform and opening up launched in 1978, China’s ownership structure has undergone profound changes. It is far more diversified, and private and foreign investment contributes more than half of the economy.
However, State-owned enterprises, or SOEs, and especially large ones, still play a major role in the energy, aviation, chemical, and auto-making industries.
Since the turn of the century, the government has launched what it calls a "go-out" strategy.
It encourages competitive companies to invest overseas, and plans to bolster 30-50 SOEs as significant global players.
"Investors both from the US and China have shown a strong desire in investing across the pacific, and it's necessary for both countries to create a sound investment environment for them," said Zhang.
He said he hopes the US government specifies the risks investment poses to national security; and avoid unnecessary expansion of investigation scope of, and discrimination against, investment from the State sector.
Chinese companies are eager to increase their presence in the US chemical, pharmaceutical, aviation, and electronics sectors.
"And with ample foreign exchange reserves, we have the capacity to do so," said Zhang. China had 1.43 trillion USD in foreign reserves at the end of September.
Official figures show that US companies invested 6.55 billion USD in China last year, accounting for 3 percent of the US' total overseas investment.
In contrast last year, Chinese firms invested only 198 million USD in the US, making up only 1.1 percent of total overseas investment that year.
With a total investment of 54 billion USD, US investors have set up 52,211 companies in China.
"Compared with our economic strength, our investment in the US is not a lot - and we still have great potential to tap," said Zhang.
Questions:
1.The US Foreign Investment Bill did what with regard to proposed foreign investment?
2.The US Foreign Investment Bill also requires a second stage investigation into investments from which type of company?
3.How much money did US companies invest in China last year?
4.How much money did Chinese companies invest in the US last year?
Answers:
1.Tightened national security reviews.
2.State-owned company.
3.$6.55 billion.
4.$198 million.
（英语点津 Celene 编辑）
About the broadcaster:
Jonathan Stewart is a media and journalism expert from the United States with four years of experience as a writer and instructor. He accepted a foreign expert position with chinadaily.com.cn in June 2007 following the completion of his Master of Arts degree in International Relations and Comparative Politics.
