This suggests that foreign investors have enhanced their confidence in development projects in China since it joined the World Trade Organization late last year. Statistics show that the Shanghai Municipal Government approved 230 foreign-funded projects in January, an increase of 45 percent compared with last year's same period. They involved a total contractual value of US$775 million, up 10 percent. Nearly 40 percent of the projects fell into the category of manufacturing. Forecasting foreign investment usage for this year, a municipal official said the city is expected to attract a contractual value of US$6 billion this year.

Breakthroughs will be made in the service sector, he said. For instance, more overseas law firms and information advisory agencies will be allowed to operate in Shanghai this year. The first batch of economic spheres to be opened to foreign investors includes science and education, foreign trade, commerce, sports and exhibitions. The official added that sino-foreign travel services and wholesale centers are likely to be set up in Shanghai soon.

(moftec.gov.cn February 22, 2002)