China Opens Trade Show with Equalitarian Investment Outlook

The Chinese Vice President Xi Jinping officially launched the annual international fair by raising a symbolic "golden key" to open the exhibition hall at Xiamen in the southeast Fujian Province. At the event, Xi cleared the doubts of foreign investors by saying that his country would initiate steps to treat foreign firms equally in government procurement, amid growing complaints that the nation's business climate has deteriorated.

The 14th China International Fair for Investment & Trade (CIFIT), the annual sole nation-wide trade and investment promotional fair aims to attract foreign direct investment. The four-day event is expected to witness a gathering of about 50,000 domestic and foreign businessmen from more than 130 countries.

Three professional exhibitions will be held simultaneously with the 14th CIFIT - the 6th Cross-Strait Travel Fair, 2nd China International Fair for Investment in Property (2nd CIFIP), the International Energy Conservation and Environmental Protection and New Energy Exhibition 2010.

Xi told "With regard to government purchases and construction projects, the Chinese government will adopt an open, transparent plan to let foreign companies and technological products enjoy equal treatment." Xi's comments came after the European Union Chamber of Commerce complained last week uneven enforcement of laws and unfair restrictions on foreign investment were deterring overseas companies from expanding their operations in China.

Xi, who is tipped to succeed President Hu Jintao in 2013, had said at an investment forum that China was taking "a serious and responsible attitude" in talks to join the World Trade Organization's Government Procurement Agreement. China's accession to WTOGPA means that the country will be responsible to ensure a level playing field for all businesses irrespective of their origin.

Despite unequal treatment, the foreign direct investment in China rose 29.2 percent in July to $6.9bn, compared with a year earlier. Besides Director-General of WTO Pascal Lamy, the event opening ceremony was attended by several top officials from a cross-section of economies.

By Jose Roy