Ni Hui, a financial specialist, said foreign-invested companies made enormous contributions to the fast economic growth in China, but were also one of the culprits that caused imbalances in China's economic structure.
"Compared with the United States, which is the biggest destination for foreign investment, China is on a completely different path. Generally speaking, the United States is the biggest consumer of products produced by foreign companies, but China is the biggest exporting machine for foreign companies," Ni said.
Ni said U.S. figures showed that in 2009, U.S. exports accounted for 12 percent of its GDP, but consumption topped 70 percent of GDP. Apparently, Ni said, the huge foreign capital created enormous wealth in the United States, and shored up the U.S. status as the biggest economy in the world.
But in China, more than 70 percent of the trade surplus in general was generated by foreign-invested companies, because 90 percent of the surplus came from processing trade, which is dominated by foreign-invested companies, Ni said. |