CITIBANK REPORT DISCUSSES FOREIGN DIRECT INVESTMENT IN CHINA.NEW YORK--(BUSINESS WIRE)--Sept. 7, 1995--China will need to offer more concrete incentives to foreign investors in order to effectively channel foreign direct investment (FDI FDI See: Foreign direct investment ), according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the latest edition of the "Citibank China Monitor," a quarterly customer newsletter. The newsletter focuses on the upswing of FDI in China, and proposes suggestions for maintaining the country's attractiveness amid growing competition from other developing countries in Asia, such as India and Vietnam. Other highlights: Between the start of the open-door policy Noun 1. open-door policy - the policy of granting equal trade opportunities to all countries open door national trading policy, trade policy - a government's policy controlling foreign trade in 1979 and mid-1995, China approved US$334.3 billion in contracted FDI, of which US$112.1 billion had been utilized. During those years, gross domestic product (GDP GDP (guanosine diphosphate): see guanine. ) grew by an average annual rate of 9.5%, and per-capita income increased by 9 times. Investment in certain infrastructure projects newly classified as "encouraged" -- mainly in the telecommunications and transportation fields -- will increase economic efficiency of Chinese enterprises. Coastal provinces have attracted the bulk of FDI. Steps need to be taken in order to even out the flow of investment -- and subsequent economic development -- throughout China. The main difficulty currently encountered by foreign investors is the shortage of local currency funds, a result of China's tight control of the money supply, which aims to slow down the heated economy. Foreign investors also encounter foreign exchange issues -- by being denied access to the nationwide China Foreign Exchange Trade System (CFETS CFETS China Foreign Exchange Trading System ). This is expected to change. Citibank, the largest American bank with a presence in China, was recently granted permission from the People's Bank of China The People's Bank of China (PBC or PBOC) (Simplified Chinese: 中国人民银行; Traditional Chinese: to operate a branch in Beijing. Citibank's representative office in the capital city will be upgraded to a branch before the end of September. For further information, or copies of the newsletter, please contact below. CONTACT: In New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of : Kenneth Campbell (212) 559-0048 In Hong Kong: Jason Kwok (852) 2868-8365 |
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