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BEIJING, April 15 (Xinhua) -- Foreign direct investment (FDI) in China posted a 20.6 percent year-on-year decline in the first quarter to 21.78 billion U.S. dollars, the Ministry of Commerce announced Wednesday. In March, FDI was 8.4 billion U.S. dollars, the biggest amount since October 2008 which was 8.35 billion U.S. dollars. However, the March figure was down 9.5 percent from a year earlier, ministry spokesman Yao Jian said at a news conference. March was the sixth consecutive month that FDI fell. The good news is that the decline eased from the 15.81 percent drop in February and a 32.67 percent drop in January. Zhang Hanya, an economist with the National Development and Reform Commission said a reduced decline indicated overseas investors growing confidence in the country's economic recovery. Chinese Premier Wen Jiabao said Saturday that the Chinese economy showed signs of positive improvement in the first quarter as a result of the economic stimulus package adopted by China. Yao added stable investment inflows were important for the country to stabilize exports, enhance employment and boost consumption as the government tries to make China more attractive to investors. The ministry said in March it was shifting authority for approving certain foreign investments to provincial governments.
BEIJING, March 18 (Xinhua) -- China's top political advisor Jia Qinglin said Wednesday the central government had great confidence in continued prosperity and stability of the Hong Kong Special Administrative Region(HKSAR). Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference, made the remarks when greeting with a delegation of social workers from Hong Kong headed by Mrs. Betty Tung, wife of the SAR's former Chief Executive Tung Chee-hwa. Mrs. Betty Tung set up the organization in 1998, mobilizing volunteers to help needy youth and women. Jia, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, welcomed the visit of the delegation and praised its contribution to the region's prosperity and stability. He said, "China has confidence and the ability in overcoming the global financial downturn, which brought us challenges and opportunities as well." The mainland will always be a strong supporter of the Hong Kong SAR.

BOGOTA, Feb. 16 (Xinhua) -- Visiting Chinese Vice President Xi Jinping and his Colombian counterpart Francisco Santos agreed here on Monday that bilateral cooperation is to be strengthened as several agreements were signed. During talks with Santos, Xi said China and Colombia should continue the deepening of mutual political trust and exert efforts to increase cooperation in terms of commerce and investment. Colombian Vice President Francisco Santos (R) meets with his Chinese counterpart Xi Jinping in Bogota Feb. 16, 2009.The Chinese and Colombian vice presidents signed several agreements on collaboration in fields of economy, technology and finance after the meeting. China and Colombia, both developing countries, have achieved remarkable progress in bilateral relations, with deepening political mutual trust and widening pragmatic cooperation, Xi said. Visiting Chinese Vice President Xi Jinping (2nd R Front) holds talks with his Colombian counterpart Francisco Santos (2nd L) in Bogota, capital of Colombia, Feb. 16, 2009.On the development of the bilateral relations, Xi said the peoples of China and Colombia enjoy traditional and bosom friendship and the two governments have attached great importance to the development of the bilateral ties and are determined to further strengthen bilateral cooperation. Xi also said that the two sides, with a mutual understanding over each other's concerns, have timely exchanges of opinions on important matters of common interest. Colombia adheres to the one-China policy over issues concerning Taiwan and Tibet, which China highly appreciates, Xi added. Xi said that the world is experiencing complicated and profound changes, especially in such moments as the global financial crisis expands, which, according to him, should be withstood with joint efforts. He, on behalf of the Chinese government, invited national enterprises to amplify business and investment in this South American country, and welcomed Colombia to further promote friendship and cooperation through the platform of World Expo Shanghai 2010. Xi flew in the Colombian capital city Sunday afternoon from northern port Cartagena, where he met with Colombian President Alvaro Uribe on bilateral ties. He will conclude his official visit to Colombia Monday evening and continue his six-leg tour to Venezuela. The trip has already taken him to Mexico, Jamaica, and he will head towards Venezuela, Brazil and Malta.
BEIJING, Feb. 27 (Xinhua) -- China lodged another stern representation to Japan on Friday over Japanese Foreign Minister Hirofumi Nakasone's remarks that the Treaty of Mutual Cooperation and Security between Japan and United States is applicable to the Diaoyu Islands. According to the reports by the Taiwan-based Broadcasting Corporation of China (BCC), an official of the U.S. State Department, familiar with East Asian affairs, said at a press conference in Washington on Friday that the Diaoyu Islands were always under Japan's administrative jurisdiction and the Treaty of Mutual Cooperation and Security between Japan and United States was applicable to them. Japanese Foreign Minister Hirofumi Nakasone echoed the U.S. official's remarks afterwards. Chinese Foreign Ministry spokesman Ma Zhaoxu rejected Nakasone's remarks later in a press release, saying the Japan-U.S. Mutual Cooperation and Security Treaty should not harm the interests of third parties, including China. "Any words and deeds that bring the Diaoyu Islands into the scope of the Japan-U.S. Mutual Cooperation and Security Treaty are absolutely unacceptable for the Chinese people," he said. Ma stressed again that the Diaoyu Islands and adjacent islets had been Chinese territories since ancient times and China held "indisputable" sovereignty over the islands. "We have lodged stern representations to Japan again and required the United States to clarify reports on the issue," he said. He also urged the two countries to realize the great sensitivity of the Diaoyu Islands issue and proceed with discretion in word and deed, so as to avoid damage to the general interests of China-Japan and China-U.S. relations and regional stability.
BEIJING, April 3 (Xinhua) -- After a mere four-and-a-half hours, world leaders at the G20 summit in London decided to devote about 1 trillion U.S. dollars to supporting world economic growth and trade, an outcome that surprised many analysts with its scale. But in that scant time, China had a chance to showcase its growing importance in the world economy. China said it would contribute 40 billion U.S. dollars to the International Monetary Fund's (IMF) increased financing capacity. That's only a small portion of the total, but it could take China's IMF voting rights from to 3.997 percent from 3.807 percent. China's new voting share would still far behind that of the United States, which is first with about 17 percent. However, since many countries' voting shares in the IMF are well under 1 percent, any incremental change gives a member just a little extra say in the workings of the multilateral organization. And so the potential change is a small step toward China's goal of having more influence on how the IMF, and the world financial system, operates. HIGHER FINANCIAL STATUS Economists said China's proposed contribution of 40 billion U.S. dollars was in line with its current development level and would mean a more influential voice for Beijing in international financial institutions and in shaping the world economic order. "China's promise of extra funding was a contribution to the world economy and showcased the country's clout," said Zhao Jinping, an economist with the State Council's (cabinet's) Development Research Center. Tang Min, deputy secretary general of the China Development Research Foundation, said the country's voting rights and quota of contributions to multilateral bodies still fell short of its status as the world's third-biggest economy. He said China would further step up its contributions, and influence, as its economic power grew and reforms of the international financial system went forward. Zhao said it was part of a long-term trend for developing countries like China to have more influence in decision-making at international financial institutions, noting that the "obsolete mechanism and structure of world financial organizations" failed to reflect an evolving world economy. British special G20 envoy Mark Malloch-Brown was quoted in the China Securities Journal on Thursday as saying that an overhaul of the world financial system should start with international financial institutions and reforming the IMF meant China's voice must be bigger. The G20 leaders' statement was a "positive signal" in that it gave a timetable for reforming the IMF and the World Bank, said Zhang Bin, an expert with the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, a government think tank. Zhao said China's obligations to international financial institutions should reflect not just the country's size but also the fact that China is still a developing country. He urged China to expand its influence by actively joining multilateral or regional dialogues and offering more proposals on international issues. "It should be a step-by-step process for China to shoulder more responsibility. It can't be accomplished in just one move," said Zhao. LONG ROAD TO REFORM Be it "a turning point," as U.S. President Barack Obama stated, or "a new world order," as British Prime Minister Gordon Brown claimed, the G20 summit was a major step in reshaping the global financial system, but there was still far to go, Chinese economists said. "China should seek to expand its IMF quota and voting rights further after the summit. Although the statement give a timetable for reform, it remains unclear whether the goal can be achieved because that would affect the interests of the United States and the European Union," said Mei Xinyu, a researcher at China's Ministry of Commerce. The G20 statement reads in part: "We commit to implementing the package of IMF quota and voice reforms agreed in April 2009 and call on the IMF to complete the next review of quotas by January 2011." "On the one hand, China could count on the IMF restructuring, and on the other hand, it may start again somewhere else. For instance, it can push forward the establishment of the 120-billion-U.S.-dollar reserve pool agreed by several East Asian countries," Mei said. Leaders of the 10 members of the Association of Southeast Asian Nations plus China, Japan and the Republic of Korea agreed last month to speed up the creation of a foreign-exchange reserve pool of 120 billion U.S. dollars to address liquidity shortages. Mei described the pool as an "Asian Monetary Fund," saying it could partly replace the IMF in Asia and help increase use of the Chinese currency in international trade. Another government economist, Wang Xiaoguang, said the agreement served as a foundation for more concrete policies to tackle the global downturn and this would be good for global stability and China's own economic recovery. Wang added that it was unrealistic to change the global financial order immediately, because it would cause conflicts among major economies. "They will rework the current system rather than introduce a new one," he said. Zhuang Jian, an economist at the Asian Development Bank, said the biggest challenge was how to implement those commitments. China should closely monitor the implementation of the agreement and decide whether its short-term objectives could be realized. "China's appeals will be discussed after the summit," he said, referring to financial market reform and the position of emerging countries in the international financial system. "I think the country will have a bigger say in the global financial system. But the G20 summit is just a forum, and if the global economy worsens, the agreement might end up as nothing more than words," he said.
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