Utilization of foreign capital

Hainan province approved 184 FDI contracts with a total contracted investment of US$137.05 million, a fall of 82.69 per cent against 1999. All three forms of FDI had experienced declines of various degrees (see Table 7.21.4).

Table 7.21.4: Utilization of foreign capital, Hainan Province, 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:	389	2,780.77	127.05	1,062.07	21.46
Equity joint ventures	133	329.78	-5.35	235.30	-3.89
Contractual joint ventures	15	82.84	-39.18	90.43	311.79
Solely foreign-owned enterprises	241	2,368.15	220.02	736.34	21.18
2000
Direct foreign investment:	184	137.05	-82.69	430.80	-11.08
Equity joint ventures	50	49.46	-26.15	172.87	9.74
Contractual joint ventures	2	5.17	-90.42	27.62	572.02
Solely foreign-owned enterprises	132	82.42	-87.64	229.10	-23.24

Hong Kong was the most significant investor in the province (see Table 7.21.5). 88 Hong Kong-invested projects were approved in 2000, with a total contracted investment of US$47.37 million. Second to Hong Kong was Taiwan, who invested US$19.21 million in contract value in 45 projects.

Table 7.21.5: Key sources of FDI, Hainan Province

Source of FDI	No. of projects	Contract value (US$million)
Hong Kong	88	47.37
Taiwan Province	45	19.21
Japan	8	3.92
Republic of Korea	5	4.28
UK	3	11.71

Major foreign-invested projects were mainly engaged in tourism and hotels, agriculture, manufacturing and property development. Multinational companies such as Siemens, Dupont, BASF, Benz and Mitsubishi have also set up operations on the island. The province will place a priority on projects connected with power generation, transport, farm product processing, environmental protection and tourism in its future efforts to attracting foreign direct investment.