【正文】 zation will be changed, and the ideas, means, key industries, regional structure, etc. of the foreign capital utilization will also change greatly. To actively and effectively utilize foreign capital and to practically transfer the emphasis to the introduction of advanced foreign technologies, management experiences and highquality talents are the key points for improving the quality of foreign capital utilization during the 11th FiveYear Plan.I. Basic Information on Foreign Capital Utilization of China During the 10th FiveYear PlanDuring the 10th FiveYear Plan, marked by the entry into WTO, the opening up to the outside world of China has entered a pletely new stage of fully taking part in international economic cooperation and petition, and the foreign capital utilization has also walked onto a new step. During the 10th FiveYear Plan, a total of approximately $383 billion foreign capital was actually utilized in China, of which approximately $286 billion was foreign direct investment, approximately $38 billion was raised by issuing stocks overseas, and approximately $46 billion was from foreign loans. The amount has far exceeded the actually pleted amount during the Ninth FiveYear Plan. The main features are as follows:(1) The scale of foreign investments has been extended, and the investment methods have been more diversified. In terms of foreign direct investment, during the 10th FiveYear Plan, the utilization of foreign direct investment has increased by 34 percent over that during the Ninth FiveYear Plan. China has bee one of the major destination countries of international capital and transnational panies39。ao Nuclear Power Station in Guangdong, Tianwan Nuclear Power Station, Qinshan Nuclear Power Station, purchase of planes by airlines, helped introduce some important advanced technical equipment and key equipment which could not be manufactured by China, alleviated the unsuitable structure of foreign exchange sources from domestic financial institutions, and enhanced the domestic institutions39。s foreign capital utilization worth paying attention to. First, the problem of stressing quantity but ignoring quality, which has existed in absorbing foreign capital for long, is still prominent. Some local governments and departments absorbed foreign capital blindly without caring costs and pursued the quantity of foreign capital unilaterally, and the phenomenon that the state industrial policies were broken occurred frequently. Second, the leading enterprises in some industries were acquired and merged by foreign investors more frequently, and in some fields, the symptom of foreign investment monopoly arose or even expanded rapidly, which might threaten the state economic security, particularly industrial security. Third, the overall absorption scale and level of foreign direct investment in the central and western regions were paratively low, and the gap from the foreign direct investment utilization in the eastern regions has been further widened. Fourth, the technology spillover of foreigninvested enterprises was not prominent, and some foreigninvested enterprise abused intellectual property protection, which were against domestic enterprises39。 to make an overall plan for domestic development and the opening up to the outside world, properly deal with the relationship between the foreign capital utilization and the balance of international payments and between utilizing foreign capital and making the best use of domestic funds, to promote adjusting and optimizing the domestic industrial structure and regional economic structure, as well as to conscientiously improve the quality of foreign capital utilization。 we shall strive for the further extension of foreign investments from the simple processing, assembly and production and manufacturing at a low level to research, development, highend design, modern circulation and other new areas, and propel China to bee one of the manufacturing bases of high valueadded products in the world。 we shall strengthen the control of the structure and purposes of foreign debts and strictly prevent the risks of foreign debt。 products and improving their market petitiveness, encourage foreign capital to be mostly contributed to automobile design and establishment of research and development centers, and continue encouraging foreign capital to develop the manufacturing of professional automobile parts and ponents with high technology content.We shall encourage foreign capital to continue to be used in reorganization and reform in mechanical industry, light industry, industries concerning textiles, raw materials, construction and building materials and other traditional industries, improving enterprises39。 mechanisms.The insurance industry shall carefully fulfill China39。s mitments to the WTO. Foreign investors shall be allowed to run domestic telemunications business within the statutory scope through establishing joint ventures, the proportion of foreign investments in the market of valueadded telemunications service may be enlarged, and the opening up of the basic service market shall be propelled prudentially. The policy system on the opening up to the outside world of the telemunications industry shall be improved.The mercial sector shall lay emphasis on improving the level of foreign investment utilization. We shall, by aiming at the introduction of modern business operation philosophy, advanced foreign distribution methods, marketing networks and service means, keep a proper increase of the number of foreigninvested mercial retail enterprises, and develop foreigninvested mercial wholesale enterprises, large chain stores and distribution centers in an orderly way. Large domestic mercial enterprises shall be supported to optimize the structure and improve the management level by bringing in foreign capital. We shall pay close attention to the influence of foreign investments to the mercial development of China, d