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BIZCHINA / Investment Alerts

China reduces investment barriers

(Xinhua)
Updated: 2007-09-03 17:35

China is among the top reformers in the 21-member Asia-Pacific Economic
Cooperation (APEC) in removing barriers to investment, boosting greater
economic growth in the country, says a research report released in Sydney
Monday.

"It is the improvement in the investment climate in China compared to
other economies that has mattered most for the global pattern of
investment," says the report titled "Reducing Behind-the-Border Barriers
to Investment", which was drafted by the Center for International
Economics, based in Canberra, capital of Australia.

In general, those APEC economies with fewer impediments to doing business
and a more favorable investment climate are more prosperous, says the
report.

The report identifies behind-the-border barriers to investment as
encompassing domestic policies, rules, procedures and laws which may
include excessive regulations, unclear property rights and poor legal
systems.

The center quotes a World Bank report as saying that the Chinese
government sped business entry, increased investor protections and
reduced red tape in trading across borders.

China also established a credit information registry for consumer loans.
Now 340 million citizens have credit histories, according to the World
Bank.

The removal of those barriers to investment in China came on top of a
host of other reforms associated with the country's transition to a
market economy and accession to the World Trade Organization, says the
Australian report.

China has also privatized many State-owned enterprises, strengthened its
legal system, spent heavily on infrastructure and moved to strengthen
property rights over time, the reports notes.

The report concludes that if investors in APEC economies faced fewer
barriers, investment would be higher and of a better quality, economic
growth would rise and the incidence of poverty across APEC would fall.

(For more biz stories, please visit Industry Updates)

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