国际经贸高级英语18课件.pptVIP

TEXT Foreign Finance Capital (Private and Official Capital Inflows, Direct Foreign Investment) Fearing a revival of extraterritorial rights and other abuses that characterized the post-Opium War “opening” of China, PRC leaders have always considered the utilization of foreign capital to be a sensitive topic. Although the Chinese participated with the Soviets in joint ventures in shipping and aviation, as well as oil and ore production in Xinjiang during the early 1950s, direct foreign investment became a forbidden topic following the Soviet debt repayment debacle in the 1960s. Yet Chinese living overseas were not regarded as foreigners; apart from the years of the Cultural Revolution, the Chinese government has always actively courted Overseas Chinese remittances and investment. This experience in dealing with Overseas Chinese capital had taught Chinese elites how to open the door to “genuine” foreign investment by 1978 before the Third Plenum.; Foreign capital: pre-Third Plenum origins. Since the founding of the PRC, the Chinese have taken advantage of preferential loan arrangements. To finance the large-scale importation of Soviet turnkey projects and equipment, Zhou Enlai signed China’s first preferential loan agreement with the Soviet Union in February 1950 for US$300 million at a 1 per cent interest rate. Following the Sino-Soviet schism, the Chinese readily accepted deferred credit offered by Western capital markets. For the most part, they utilized seller’s credit, which was ideologically acceptable because it was not considered a form of foreign debt. As a result, the Chinese took up US$260 million in sellers’ credit from Japan, Britain, West Germany and other Western market countries (of which 70 per cent were extended terms), purchasing 51 complete plant and equipment imports during the 1960s, and paying only US$13 million in interest.; Like many developing countries, China was also heavily d