Utilization of foreign capital

Foreign direct investment in 2000 increased by 11.64 per cent over the previous year in terms of contracted FDIs. However, the FDI in wholly foreign-owned enterprises dropped sharply by a little over 90 per cent compared with 1999 (see Table 7.4.4).

Table 7.4.4: Foreign direct investment in 1995 and 2000, Shanxi Province

	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:	178	228.41	-6.35		99.58
Equity joint ventures	138	169.31
Contractual joint ventures	14	27.04
Solely foreign-owned enterprises	26	32.06
2000
Direct foreign investment:	71	261.74	11.64	224,720	-42.57
Equity joint ventures	48	150.28	146.64	23.75	-24.70
Contractual joint ventures	12	104.14	10.83	170.47	-32.64
Solely foreign-owned	11	7.32	-90.8	30.5	-71.41

Foreign direct investment came mainly from 39 countries and regions . The key sources of FDI are listed in Table 7.4.5.

Table 7.4.5: Main sources of FDI, Shanxi Province

Source	No. of projects	Contract value (US$ million)
Hong Kong	21	125.89
USA	17	84.02
Taiwan Province	10	17.00
Germany	5	0.78
British Virgin Islands	4	“11.95
Republic of Korea	3	0.66
Australia	2	6.72
Malaysia	1	7.17
India	1	4.82
France	1	2.58
Thailand	1	1.50
Switzerland	1	0.86
Hungary	1	0.70

Among FDI projects approved in 2000, 64 were production- related and 7 non-production. 57 projects were involved in the manufacturing industry, for example textiles , chemicals, pharmaceuticals , machinery, special equipment manufacturing, electronics and telecommunications equipment.