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Foreign firms' monopolies cause concern
By Fu Jing (China Daily)
Updated: 2005-12-08 05:44

Instead of forging partnerships with local companies, foreign enterprises have accelerated their efforts to become single investors in China, Xie said.

In addition, their presence in the electronics, auto and chemical industries, as well as some large projects, has increased considerably this year, according to Xie.

In terms of foreign direct investment (FDI), China ranks second after the United States, which received US$96 billion in FDI in 2004, according to a United Nations report. During January-October period, FDI in China reached US$48.4 billion.

Out of the world's top 500 MNCs, more than 400 have invested in China. "The volume of investment has increased markedly," said Xie, adding that the foreign investment currently averages US$4.04 million per contract, up from US$3.51 million in 2004.

Xie said many foreign companies, which mainly operate factories and processing centres in China, are moving their research and development centres to China.

Statistics indicate that over 700 foreign research and development laboratories have been set up in China since Motorola established the first one in 1993.

The latest example is Ericsson, the world's largest maker of mobile phone networks, which said in September it would invest US$1 billion in manufacturing and research in China over the next five years.


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