Utilization of foreign capital


In 2000, Guangzhou recorded an increase of 8.1 per cent as a result of its efforts to attract foreign direct investment. A total of 647 contracts were approved in the year, a total investment of US$1.53 billion. FDI in the form of wholly foreign-owned enterprises outnumbered both equity and contractual joint ventures (see Table 7.41.4).

Table 7.41.4: Utilization of foreign capital, Guangzhou City, 1995 and 2000
 

Approved contracts

Actual utilization

Mode

Number

Total value (US$ million) year's total value

% change over previous year

Total value (US$ million) year's total value

% change over previous year

1995

Direct foreign investment:

1.774

6,731.01

-1.85

2,144.44

18.21

     Equity joint ventures

439

1,408.26

 

498.68

 

     Contractual joint ventures

852

4,390.22

 

1,386.09

 

     Solely foreign-owned enterprises

483

932.22

 

259.67

 

2000

Direct foreign investment:

647

1,527.59

8.1

2,989.23

0.1

     Equity joint ventures

135

284.92

5.1

470.85

-61.2

     Contractual joint ventures

124

565.38

4.3

1,779.77

48.2

Solely foreign-owned enterprises

388

677.29

12.8

738.61

29.2

Foreign investment came from 46 countries and regions which can be broadly divided into three categories: a) from overseas Chinese in Hong Kong, Taiwan Province, Macau and Singapore; b) international capital from developed countries such as Japan, the USA and Western Europe; and c) international floating capital from the British Virgin Islands. Detailed information on the key sources of investment is provided in Table 7.41.5.

Table 7.41.5: Key sources of FDI, Guangzhou City

Source

No. of projects

Contract value (US$ million)

Actual utilization (US$ million)

Hong Kong

359

637.87

1,957.47

British Virgin Islands

67

371.15

393.90

Taiwan Province

95

92.75

72.98

Japan

7

81.33

63.00

Singapore

18

77.19

104.63

USA

45

66.69

135.87

Cayman Islands

4

39.27

5.84

Netherlands

4

30.40

11.24

Samoa

6

23.53

6.12

Macao

8

16.45

63.40

Belize

1

10.00

2.75

By the end of 2000, the accumulated number of registered enterprises with foreign investment had reached 12,608 in Guangzhou. 5,541 of these had already gone into production. Foreign investment actually utilised amounted to US$20.669 billion. Total export value of enterprises with foreign investment reached US$6.01 billion, accounting for 65.44 per cent of the city's total export value.




Doing Business with China
Doing Business with China
ISBN: 1905050089
EAN: 2147483647
Year: 2003
Pages: 648
Authors: Lord Brittan

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