China will focus on better utilizing foreign investment, Premier Wen Jiabao, said in the government work report at the opening meeting of the 5th session of the 11th National People"s Congress (NPC).
In particular, foreign investment in sectors such as high-end manufacturing industry, high-tech industry, modern service industry, new-energy, energy conservation and the environmental protection industries would be encouraged, Chinese premier said.
The involvement of foreign investment could be a three-fold win, as the cutting-edge technology and advanced management systems that foreign investors brought would give an impetus to the long-term sustainable development of domestic enterprises, said Gao Xia, general manager of Beijing Hongbang Finance Ltd.
More importantly, more capital injection could help speed up technological innovation and management improvement, which was essential to industrial growth in the long run.
Meanwhile, companies could reap economic returns and better perform their social responsibilities through cooperation with foreign companies in areas such as energy-saving protocols and environmental protection projects, Gao added.
In fact, a slice of the giant cake presented by the promising Chinese market has long been the goal of a lot of investors from outside.
For example, the ABB Group, the leading power and automation technology group, moved its Global Robotics business division headquarters to Shanghai from Detroit in 2006, having its eyes on the spreading smart grid construction in China back then.
In 2009, Schneider Electric set up an independent unit for its Chinese solar PV business, providing a full portfolio of solutions including electrical distribution systems, grid monitoring systems, as well as protection and control systems, which revealed the fast growth of its business in China as well as its confidence in the future.
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