Foreign direct investment

“ From the maturities, refunding operations, and interest remittances alone, growing out of the permanent investment of foreign money in our securities, there results a very great amount of international security and exchange business. Whether Europe's investment here amounts to three billions or four billions or five billions, it is impossible to say ”

“ We will see that the negative list for foreign investment is fully observed and ensure national treatment for all foreign-invested enterprises. We will encourage foreign-invested enterprises to move into a broader range of sectors, and support more foreign investment in medium- and high-end manufacturing, R&D, and modern services, as well as in the central, western and northeastern regions. ”

“ The enactment of the Law on Foreign Investment will be expedited to build a legal system for foreign investment that meets the needs of reform and opening-up in the new era, elevate opening-up to a higher level, push for deeper reform in the foreign investment administration system, and protect the legitimate rights and interests of foreign investment and foreign investors. ”

“ Foreign investment plays an essential role in your growth, while your holdings of foreign currencies – and your management of your own currency – are coming to play a vital part in the international monetary system. ”

“ Free and fair trade benefits all nations. For this reason, the United States is committed to policies promoting unrestricted trade and investment consistent with our security interests. Internationally, we are working with our trading partners for new negotiations in support of freer world trade, greater competition, and more open markets. At home we have urged American business to challenge foreign competition with aggressive selling, research and development, improved management systems, and innovations. ”

“ Measures to be taken include expanding market access for foreign investment in broader areas, strengthening international cooperation on intellectual property protection, increasing imports of goods and services, implementing more effective international coordination on macro-economic policies, and putting more focus on the implementation of opening-up policies. A more open China will have more positive interactions with the world, which in turn will advance the development and prosperity of both China and the world. ”

“ Meanwhile, in order to create a more equitable, transparent and predictable environment for foreign investment, China calls on host countries to refrain from abusing security review or adopting other restrictive practices to impose excessive limitations on foreign investment. ”

“ Our exports and our economic strength depend upon our access to an open, stable, and growing world market. The nations of the world are becoming increasingly intertwined in a global economy. We must continue our efforts to remove foreign barriers to American goods and services, to open new markets, and to keep them open. ”

“ We must try to get the optimum advantage out of our limited foreign exchange resources by funnelling them to these industries that can contribute most to our national income. Overcrowding in many industries needing imported capital equipment, investing in many lines of production not basic to our development, and importation of non-essential consumption goods are unnecessary drains on our foreign exchange. We should bring existing industries to their efficient productive capacity before going ahead with any but the most necessary new ventures. ”

“ So great is the foreign investment of capital in this country that the necessity of remitting the interest and dividends alone means another continuous demand for very large amounts of foreign exchange. Estimates of how much European money is invested here are little better than guesses. The only sure thing about it is that the figures run well up into the billions and that several hundred millions of dollars' worth of interest and dividends must be sent across the water each year. ”

“ Developing countries have sought, for many years, fundamental changes in international economic arrangements so as to make them more equitable, particularly with regard to financial flows, trade, transnational investment, and technology transfer. ”

“ Such measures undermine the multilateral trade rules and the international economic order In the advance toward civilization, humanity has widely accepted an international governance system based on rules and credibility. Countries, big or small, strong or weak, should respect each other, engage in equal-footed dialogue and jointly safeguard international rules in the spirit of contract. This is fundamental to promoting global trade and investment and boosting global growth. ”

“ In the attainment of these targets, large amounts of both investible resources and foreign exchange were expected to be needed; and foreign exchange was thought harder to obtain. Domestic savings were expected to fall short of investment requirements by a total of P2.4 billion over the four years of the program; but the shortage of foreign exchange earnings as compared to import requirements was projected at P3.3 billion. A high priority was therefore attached to the expansion and diversification of our exports. ”

“ International investment in the United States promotes economic growth, productivity, competitiveness, and job creation. It is the policy of the United States to support unequivocally such investment, consistent with the protection of the national security. ”

“ Our development program requires, in addition to heavy invest­ment, large imports of capital goods and some raw materials; and recent world developments indicate that we may shortly have either to give up some of our protected markets or share them with other developing countries. Furthermore, the improvement of our export earnings requires that we first improve our relations with other countries; so that external trade becomes a question of in­ternational prestige as well as of national development. ”

“ We will increase friendly contacts with other countries in the world to create a favorable external environment for the steady and rapid development of China's economy. We will continue to deepen pragmatic cooperation with other parties, work with them to curb the spread of the global financial crisis, promote reform of the international financial system, and oppose trade and investment protectionism, in order to help bring about an early recovery of the world economy. ”

“ China has been promoting the establishment of a fair, equitable and transparent system of international trade and investment rules to boost the orderly flow of production factors, efficient resources allocation and full market integration. ”

“ This circumstance [Pg 221] is counted upon by the leadership to motivate trusts toward attaining optimum efficiency in export production and toward adjusting output to foreign market requirements. Financial incentives to surpass official foreign trade targets are provided by allocating the producers and foreign trade organizations a portion of the receipts from excess exports and a portion of savings made on imports through import substitution. ”

“ In today’s world of greater globalization and widespread international production, bilateral trade and economic cooperation already extend beyond trade in goods. Trade in services and sales of local subsidiaries in the host country (local sales in two-way investment) should also be included. If we give full consideration to these three factors—trade in goods, trade in services and sales of local subsidiaries in the host country, trade and economic cooperation delivers balanced benefits in general for China and the United States, with the latter reaping more net benefits. ”

“ Dismantling protectionist barriers and providing correct incentives and support shall make our industry more efficient and world competitive — and our exports, the spearhead for economic revival and growth. ”

“ China supports necessary reform of the WTO and firmly opposes unilateralism and protectionism. Committed to pursuing open, integrated and win-win development, China is working to build an open world economy, enhance cooperation within the G20, APEC and other multilateral frameworks, promote trade and investment liberalization and facilitation, and make economic globalization more open, inclusive, balanced and beneficial to all. ”

“ The Export-Import Bank of the United States, the Overseas Private Investment Corporation, the Trade and Development Agency, the Small Business Administration, and the Departments of the Treasury and Commerce have provided new forms of trade finance that help our firms to compete in the global marketplace. We are addressing the removal of unnecessary and ineffective export controls and streamlining the licensing process, liberalizing controls on a range of high-technology products and increasing the effectiveness of multilateral control regimes. ”

“ But, if both parties derive advantage from international trade, there is no necessity whatever that this advantage should be equally great on both sides. As in every struggle over prices, the gain here also is greatest on the side of the nation whose desire to hold fast to their own commodities is farthest [Pg 411] from being outweighed by the want of the foreign commodity, and which, at the same time, employs most productively the equivalent received in imports in exchange for its exports. ”

“ We will promote the liberalization and facilitation of international trade and investment.
Economic globalization is in the fundamental interests of all countries. China will not shift in its commitment to promoting global economic cooperation, will uphold the multilateral trading regime as the main channel of international trade, and will play an active part in multilateral trade negotiations. ”

“ Just as we must pay for our imports by our exports, and in addition pay hundreds of millions of interest and dividends on our securities held abroad, so other nations must export to us very largely if they buy from us largely, and the newer countries must export more than they import. We must, with extreme good judgment and care, ascertain just what we can buy without hurt to our home products, at the same time that we induce the foreigner to buy from us all that he can without hurt to his own production. ”

“ Improving stability in emerging markets is also key to global economic growth. International flows of investment capital are needed to expand the productive potential of these economies. These flows allow emerging markets and developing countries to make the investments that raise living standards and reduce poverty. Our long-term objective should be a world in which all countries have investment-grade credit ratings that allow them access to international capital markets and to invest in their future. ”

“ A really far-sighted policy which would make it its principal object to assist the progress of our foreign trade would have to guard against the mistaken idea that the levying of high rates was the only means of obtaining interest on the capital invested. ”

“ More than 80 per cent of imports last year were capital goods and raw materials. Only the balance of 20 per cent went to consumer goods. The increase in export production and the modified import pattern reflected an overall economic gain for the country in foreign trade.
As we can see, our foreign exchange earnings have not kept pace with the rising internal demand for imports. The gap had to be financed from our international reserve so that our development program would not be paralyzed at its crucial first stages. ”

“ On the other hand, there are imports so entirely of foreign origin, and so free from considerations of competition with domestic industry, that a large revenue may be raised upon them in the custom-house, without disturbing the freedom or equity of international trade. ”

“ When we lend money to foreigners we give them the right to draw on us now in return for their promises to pay some day; in other words, we make an invisible import of foreign securities, and in the present state of our trade balance all imports, whether visible or invisible, need careful watching. ”

“ Full decontrol may obviously be accompanied by an increase in price of imports, but it will create conditions favorable for the establishment of new industries to increase production for export and employment and, in the long run, stabilize prices. With the savings of foreign exchange resulting from the reduction of imports of consumer goods, we shall have more resources available for the importation of machineries and equipment to expand industrial production. ”

“ We will accelerate institutional reform in local governments and move forward with the reform of government-affiliated institutions.
We will strive to ensure steady growth in foreign trade. While stressing the importance of boosting domestic demand, we must not slacken efforts to promote export. In the face of the serious situation of a sharp decline in external demand and growing trade protectionism, we will straighten out and adjust our foreign trade policies and increase our support for import and export. ”

“ Our diversified productions, however, are increasing in such unprecedented volume as to admonish us of the necessity of still further enlarging our foreign markets by broader commercial relations. For this purpose reciprocal trade arrangements with other nations should in liberal spirit be carefully cultivated and promoted. ”

“ As we so invest and trade, however, we must recognise the direction in which our policy is leading us and the dangers, both from within and without, that we are liable to incur. The more we invest the more we shall come into competition with the investing nations of Europe. We are already urged to put capital into South America on the just plea that trade follows investment, and the same forces that are pushing our trade outward will seek opportunities for investment in the mines and railroads of the politically backward countries. ”