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Chinanews, Beijing, Nov. 21 – China will not encourage foreigners to make investments in projects that are done merely for export purpose, said Zhang Mao, vice1 director of the State Development and Reform Commission.
He made the statement while attending a meeting of CEOs of various multinational2 companies from 38 countries. China will implement3 a new "directory of industries for foreign investment" on December 1. The new directory has deleted the thirteenth item originally put under the “encouraging” category. With this deletion, foreign investment projects that are done merely for export purpose will no longer enjoy any preferential treatment given by the Chinese government. In addition, the new directory encourages foreigners to make investment in the high-tech4 field and the environmental-friendly projects. The new policy encourages foreigners to make investment in fields that will promote the recycling economy and therefore cause little pollution, in the service outsourcing section or in projects that are related with ecological5 protection. Investment in the high energy-consumption, high material-consumption and high-polluting projects are either limited or forbidden, Zhang said. At present, more than 70% of the foreign investments are made in the manufacturing industries and only a small proportion of investment goes to eco-friendly projects. The new policy will be beneficial to upgrading the quality of foreign investment introduction, thus helping6 the balance of international payments.
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