In 2007, a major proportion of the funds in
investments in fixed assets originate from domestic
funds that are non-state owned. Following that, more
than a quarter is derived from domestic funds that
are state-owned. Only 10% of the funds are derived
from Hong Kong, Taiwan, Macao and foreign funds.
However, the proportion of foreign funds would be
likely to increase as China needs to utilize foreign
funds to adapt to the changing domestic and global
situation. Furthermore, foreign investors are being
encouraged to invest in China’s industries.
Moreover, since its accession to the World Trade
Organization, China has entered a new phase focusing
on global economic collaboration and competition in
the use of foreign funds.
