Utilization of foreign capital


In 2000, Zhejiang province approved 1,642 FDI projects, with a total contract value of US$2.5 billion, a 16.8 per cent increase on 1999. The FDI in equity joint venture, however, decreased by 14.6 per cent. Solely owned foreign-owned enterprise increased by an impressive 47.1 per cent (see Table 7.11.4).

Table 7.11.4: Foreign direct investment in 1995 and 2000, Zhejiang 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:

1,836

3,250.31

12.34

1,257.75

9.90

     Equity joint ventures

1,334

1,046.41

17.84

870.88

7.15

     Contractual joint ventures

113

362.36

50.46

93

86.07

     Solely foreign-owned enterprises

389

841.45

-7.71

293.87

4.29

2000

Direct foreign investment:

1,642

2,509.48

16.8

1,612.66

5.2

     Equity joint ventures

973

823.18

-14.6

674.59

-21.1

     Contractual joint ventures

55

254.55

21.0

194.09

19.2

Solely foreign-owned enterprises

614

1431.75

47.1

743.98

44.5

Most of these FDI projects were in the manufacturing industry. Among the 1,642 foreign-invested projects, 31 were in primary industry, 1,413 in secondary industry and 198 in tertiary industry. Hong Kong invested the most: US$665.85 million in 452 projects. A list of key sources of FDI is shown in Table 7.11.5.

Table 7.11.5: Key sources of direct foreign investment, Zhejiang Province

Source

No. of

projects Contract value in million US$

Hong Kong

452

665.85

Taiwan Province

299

322.41

United States

265

305.78

Virgin Islands

44

225.31

Japan

147

176.05

By the end of 2000, 6,864 foreign-invested enterprises were in operation. These registered total annual sales of up to RMB169.4 billion (US$20.42 billion), 23 per cent more than in 1999. Of the total sales, US$5.573 billion came from export. Total profit of the operating FIEs was RMB12.85 billion, up by 48 per cent on 1999.




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

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