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FDI bears no relation to officials' performance

chinadaily.com.cn | Updated: 2013-09-02 23:10

The Chinese government should not regard foreign direct investment as an important index by which to assess officials' performance, says an article of China Business News (excerpts below).

In some key areas, China needs both foreign investment and advanced technology.

In 2008, the central government recalibrated the tax rate for all foreign enterprises at 25 percent, the same as their Chinese counterparts. But some local governments still try to attract low-level foreign investment with preferential policies on tax, land and labor, just to increase the final GDP statistics.

Seeking foreign investment has become a compulsory task for some local officials. There are special departments set up for the purpose.

Some foreign speculators take advantage of the governments' weak point and quickly withdraw their capital from China once they have made their quick profits. Their environmental and social responsibilities are totally ignored.

The Chinese government must correct the official evaluation system for seeking foreign investment. Government officials must be vigilant with regard to foreign speculators. If the foreign investors are suspected of breaking the law, legal authorities must investigate and bring them to justice.

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