India bid to block investment will sour ties:China
  • This Section
  • Latest
  • Web Wrap
Last Updated: Thursday, July 22, 2010, 00:43
  
Beijing: Accusing India and the US of following protectionist policies, China today said any attempt to politicise outbound investments by Chinese firms or "abuse" investment protection tools to protect domestic industries would hurt bilateral ties.

Naming India and the US among other countries, the Chinese Commerce Ministry spokesman Yao Jian said that such abuse will sour trade and investment relations with China, as well as dampen the confidence of the country's outbound direct investment (ODI).

Apparently pointing to media reports that India had blacklisted 25 Chinese telecommunications providers over security concerns and banned Indian operators from Chinese purchases, Jian said there should be no misuse of trade protectionist measure in the name of national security.

"On the one hand, Chinese enterprises are encouraged to actively adjust themselves to the changing environment overseas, but on the other hand, we strongly call for some individual nations and regions not to abuse trade and investment measures against China, citing national security excuses," Yao was quoted today by state run China Daily.

"We don't think it is appropriate for them to politicise common commercial investment cases, which will hurt bilateral relations with China," he said.

China's ODI surged 24 per cent from a year earlier, to USD 55.18 billion during the first six months this year, according to new figures.

The investment mainly went to sectors such as mining, commercial services, manufacturing, wholesale and retail. Despite the rapid growth of China's ODI, Chinese investment abroad has been frequently blocked by other countries, especially the US and India, during the past few months, according to the Daily.

It also said that the US Congressional Steel Caucus wrote to Treasury Secretary Timothy Geithner last month asking the Obama administration to obstruct the USD 175 million investment proposal by Anshan Iron and Steel Group Corporation, China's leading steel producer, in a US rebar facility.

"The financial crisis has provided Chinese enterprises with a nice opportunity to expand and invest overseas, at a comparatively lower price," ministry spokesperson Yao said. On the criticism about restrictions on foreign investment in China, he said, "Loopholes do exist with China's FDI policies, but it is undeniable that the Chinese government is much willing to listen to suggestions from all sources and we are also trying to improve the environment," Yo said .

"I don't think there is any other country that could create a better environment for foreign businesses than China.

PTI


First Published: Thursday, July 22, 2010, 00:43


comments powered by Disqus