Phdcci Hails China & #39;S Core Sector Growth

The substantial investments made by the Chinese government in infrastructure development are responsible for the huge foreign direct investment (FDI) into that country, a joint business-government delegation led by the PHD Chambers of Commerce & Industry, which recently visited China, Hong Kong and Malaysia, reported.

Led by PHDCCI chairman Sushil Ansal, the delegation has said in its report that the world class infrastructure in China is the main reason for the FDI inflows into the country.

"There is constant availability of good power, the road network is very good and the telecommunication sector is witnessing rapid growth with around 30 per cent of the population using mobile phones," the report said.

Most of the investment in the development of infrastructure, the delegation's report said, has been made by the government.

"The Chinese government has issued bonds worth around $150 billion to raise money for infrastructure development," the report says adding, "domestic savings contribute around 40 per cent of the gross domestic product in China, which has been a major source of financing."

The delegation has also drawn attention to the speed with which infrastructure is created in China.

"One should admire the ability of the Chinese to create physical assets quickly. For example, the Pudong Special Economic Zone in Shanghai was a paddy field about 8-10 years back which is today a showpiece of the country's development," the report remarks.

It also noted that there are no procedural and bureaucratic delays, and there is a one-window service in the special economic zones, and in five working days of submitting the project report, clearances are obtained.

The objectives of the delegation were to study the infrastructure development in those countries and the factors which have led to the development and competitiveness of China and Malaysia in the international markets; to explore the possibility of joint ventures, transfer of technology and marketing tie-ups; and to explore and identify mutually beneficial areas of promotion of bilateral trade.