China to Enhance Financial Support to Foreign-funded Businesses

The Chinese government said on Dec30 financial institutions would be encouraged to step up credit support to foreign-funded businesses as they have become an important part of the world's third largest economy.

Foreign-funded companies should have more access to financing and would be encouraged to take part in the mergers, acquisitions and reshuffling of Chinese enterprises, according to a statement issued after an executive meeting of the State Council, or the Cabinet, chaired by Premier Wen Jiabao.

The government would do its utmost to simplify the approval procedures and strengthen administrative transparency, said the statement.

As the global economy is gradually recovering, foreign direct investment (FDI) in China rose for the fourth consecutive month in November after months of declines.

The statement said the government also encouraged overseas investors to become involved in new energy development, environmental protection, high-tech and modern service industries, as well as the advanced manufacturing sector.

Policy and funding support will also be given to overseas investment in under-developed western and central region.

The government approved the establishment of 20,600 overseas-funded enterprises in the first 11 months this year, down17.44 percent from the same period a year ago.

Some 53 percent of the total FDI went to the manufacturing sector, a spokesman of the Ministry of Commerce Yao Jian said on Dec. 16.

The statement also urged relevant government bodies and local governments to continue their efforts to bring the vulnerable-to-flooding Huaihe River under control.

It called for the practice of a strict water resource management system to guarantee safe drinking water for the people and vowed to provide Chinese rural residents with access to safe drinking water by 2013.

The meeting passed a draft decision to amend the rules for the implementation of China's patent law. The draft will be announced later by the State Council after further amendment.