China will establish 50 overseas economic and trade cooperative
areas to cope with foreign trade disputes, Chai Haitao, president
of the International Trade Research Institute under the Ministry of
Commerce (MOFCOM), was quoted by the China Economic Net as saying
at an entrepreneurs' forum on June 18.
MOFCOM recently issued the "Basic Requirements and Procedures on
the Application for Overseas Chinese Economic and Trade Cooperative
Areas." The application work has started. "The action means that
public bidding for the projects is drawing near," said Chai.
Earlier this year MOFCOM released the information on the
establishment of around 10 foreign economic and trade cooperative
areas with maximum government loans standing at 2 billion yuan
(US$249.9 million) each. The research work had actually started
earlier.
On February 25, the Shanghai Industrial Investment (Holdings) Co
Ltd and the Shanghai Overseas United Investment (Holdings) Co Ltd
briefed?Chen Jian, assistant minister of commerce, on their
plans to establish economic and trade cooperative areas
overseas.
On March 20, a delegation led by Xu Tongkai, director general of
MOFCOM's Department of European Affairs, visited Korgas Port in northwest China's Xinjiang Uygur Autonomous Region where they
studied the potential of establishing an economic and trade
cooperative area in the border city.
According to Haifeng Electric Appliance Co Ltd of Manzhouli
City, north China's Inner Mongolia Autonomous Region, it had
already signed a contract with Russia on the establishment of the
Duet economic and trade cooperative area in Russia's Zabajkal'sk
and construction had started in April. The Duet cooperative area is
one of the priority projects promoted by MOFCOM this year.
The construction of a Sino-Mongolian cooperative area has also
started, MOFCOM revealed.
The cooperative partners are mainly from Asian and African
countries?that have stable political circumstances and good
relationships with China. They include North Korea, Russia,
Kazakhstan and Nigeria. Cooperative fields include traditional
industries like energy, agriculture, light industry, metallurgy and
electronics.
MOFCOM would not limit the market to such cooperative areas.
Both scientific and technological parks and processing plants for
manufacturing industries would be welcomed, said Zhao Chuang, vice
director general in charge of MOFCOM's Department of International
Cooperation.
The move has far-reaching significance, according to MOFCOM. On
the one hand, such cooperative areas could assist in solving
foreign trade disputes and expanding exports. On the other hand,
they could help to reduce a large foreign exchange reserve.
According to Chong Quan, a MOFCOM spokesman, 18 countries and
regions initiated 25 trade remedy investigations into Chinese
products during the first five months of 2006, involving US$480
million.
The establishment of overseas economic and trade cooperative
areas could alleviate trade disputes and also prevent Chinese funds
from being used by foreign countries.
The State Administration of Foreign Exchange recently issued a
notice on the adjustment of polices on foreign exchange management
of overseas investments. The notice stipulates that from July 1
domestic investors who engage in overseas investment will have easy
access to foreign exchanges; and if the domestic investors have to
pay early-stage expenses related to overseas investment, such
payments can be remitted in advance after examination and
approval.
The administration stated that this step is aimed at encouraging
the comparatively powerful domestic enterprises to participate in
international economic and technological cooperation and
competition.
(China.org.cn by Li Jingrong, June 22, 2006)