In a letter to a teleconference of the Ministry of Foreign Trade and Economic Cooperation, State Councilor Wu Yi said that China had a long-term policy to draw FDI and would create a good environment for attract and enhancing the quality and level of FDI.

In the first half of 2002, with FDI shrinking internationally, contracted FDI to China soared by 31 percent and actual FDI amount increased by 19 percent over the same period last year.

Wu said that local governments and departments should study and exercise World Trade Organization rules earnestly, keep amending laws and regulations and maintain the stability and consistency of the FDI policy.

Illegal activities, such as smuggling, must be stopped, local protectionism and monopolies ended and government efficiency enhanced to build an attractive FDI environment, Wu added.

Shi Guangsheng, minister of Foreign Trade and Economic Cooperation, also told the teleconference of the importance of attracting better quality FDI.

(Xinhua News Agency August 7, 2002)