>> ASIAONE / NEWS / LATEST NEWS / ASIA / STORY
Premier Wen reassures foreign investors
Mon, Jul 19, 2010
China Daily/Asia News Network

XI'AN, CHINA - Premier Wen Jiabao reassured foreign business leaders on Saturday that China's investment climate was stable and said Beijing would not block the export of rare metals needed to manufacture computers and mobile phones.

He made the comments while meeting German Chancellor Angela Merkel and business leaders from the two countries in Xi'an, capital of Northwest China's Shaanxi province.

"There is an allegation that China's investment environment is worsening. I think it is untrue," Wen said in response to a question from Juergen Hambrecht, chief executive of the German chemical company BASF.

The World Bank gave China a low investment environment ranking in a July report.

Wen said foreign investment does not pour into a country where the investment environment is deteriorating, citing Ministry of Commerce data that showed foreign investment in China in the first half of 2010 rose 19.6 percent year on year.

Wen said China welcomes investment from companies that meet its industry policies. The government will ensure such companies have access to the Chinese market, he added.

"Those that have entered China all enjoy national treatment, as do Chinese companies, whether they are a foreign-funded company, a joint venture or a joint stock company," Wen said.

The premier also promised China would never block the export of rare earth minerals, but said the minerals should be exported for a reasonable price and at a reasonable volume.

China supplies about 90 percent of the world's rare earth minerals.

The meeting came after China and Germany signed 10 agreements in Beijing on Friday. The deals involved green energy, culture and a joint venture to manufacture trucks.

The two sides also signed a joint declaration on the establishment of an environmental partnership involving water resource protection, equipment safety and evaluation, energy conservation, renewable energy and technology.

Both Wen and Merkel agreed bilateral ties are at a new starting point.

"Sino-German cooperation has proven that a developed nation could conduct cooperation in a comprehensive way with a large developing nation and the key is to enhance mutual trust," Wen said.

Merkel said her trip, focused on establishing a stronger foothold for German businesses, had been a great success.

Merkel's visit indicated another honeymoon between the two countries, experts said. Tensions escalated in recent years due to Merkel's criticism of China's human rights record and her meeting with the Dalai Lama.

Bilateral ties have gradually improved through both countries' efforts. Germany is China's top trading partner in the European Union. China's trade with Germany is equal to its combined trade with Britain, France and Italy.

According to analysts, Sino-German relations have passed the test of the global financial crisis. Dealing with China in the post-crisis era is important not only to Germany, but to the whole of Europe.

Renmin University professor Jin Chanrong said Merkel's visit will assist the development of mutual trust and stable ties. It will also help her cement her leadership role, he said.

- China Daily/Asia News Network

Bookmark and Share
 
 
STORY INDEX
 
  Premier Wen reassures foreign investors
   
 
  Illicit international marriage brokers face crackdown
   
 
  Despite law, child heads overseas for transplant
   
 
  LPG canister explosion destroys house
   
 
  Autopsies done in only 4% of suicides in Japan
   
 
  At least 50 dead in India train crash
   
 
  Russian conductor on child sex charge back in Thailand
   
 
  US envoy defends military relations with Cambodia
   
 
  S Korea FM dismisses N Korean overtures
   
 
  Typhoon wreaks havoc in south east Asia
   
>> RELATED STORY
Hong Kong tour guide abuses tourists for spending too little
Taiwan agents jailed for spying for China: report
A nanny's daily life
Made-to-order maids lacking in Beijing
Cory held over drugs in china

Elsewhere in AsiaOne...

Investor Relations: Four Singapore firms invest $127m in Tianjin

Wine,Dine&Unwind: Finding oneself in the shadow of a monk

Health: China hospital refuses to treat woman with HIV: co-worker

Motoring: Bumpy road ahead for auto firms

Digital: Netizens vent anger over Google

Business: China to maintain property tightening

Just Women: Vagrant goes from beggar to prince

Multimedia: 16 killed in China ahead of Games