Foreign direct investment does not pose a threat to China's economic security and the communist giant will not slow down its pace of introducing overseas capital, which is expected to hit $60 billion this year, a senior commerce ministry official has said.
"So far, no sectors in any parts of China have been monopolised by foreign funds which are by no means in control of China's economic life line," director of the ministry's Foreign Investment Department, Hu Jingyan was quoted by Shanghai Securities News as saying on Monday.
Hu's statement came in response to recent press reports saying that foreign funds will pose threats to China's economic security, the paper said.
Currently, foreign funds made up less than three per cent of the market share in industries, which are key to the nation's economic development, he said, adding that FDI mainly focuses on high-tech and machinery and electronics industries, which witnessed the fastest growth in export.
Director of the ministry's Foreign Trade Department, Lu Jianhua said FDI used by China totalled $60.3 billion dollars in 2005, down 0.5 per cent year on year. The figure stood at $60.6 billion in 2004.
Hu noted although China's yuan-dominated deposits came to yuan 14 trillion and the foreign exchange reserves hit $818.9 billion in 2005, people should not think that China will slow down its pace in introducing foreign investment.
"Actually, the direct foreign investment used by China is far from enough," the official said.
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