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. Last Updated: 07/27/2016

China Forecasts Less Investment

BEIJING -- China expects to absorb between $30 billion and $40 billion in total foreign investment in 1997, down from $55.2 billion in 1996, the official Xinhua News Agency said Monday.


The amount is still large for China, Xinhua quoted Li Xiaoxi of the State Council's research office as saying.


Li said China could continue to draw such a large amount of foreign investment because it has successfully controlled its overheated economic growth and plans to adopt more flexible economic control policies. Other factors favoring investment included the acceleration of the reform of state-owned enterprises and development of more backward areas in the central and western parts of the country, Li added.


Earlier reports indicated foreign investment was high in 1996 in the rush to beat the end of exemptions from tariff payments on imports of capital equipment for foreign joint ventures. Moreover, as the economy slows after four years of double-digit expansion in China's GDP, some reduction in foreign investment flows is inevitable, say analysts.