【正文】 foreign investments will bee an important task of the central and western regions in utilizing foreign capital. In respect of industrial structure, the 11th FiveYear Plan will be an important period when China39。s foreign debts within the safe lines that are accepted internationally.(6) The regulations and policies on foreign capital utilization have been improved constantly, and the management level has been advanced gradually. On the basis of the requirements for the development of socialist market economy and China39。s economy and enterprises and promoted formulation of a group of industries with international petitiveness including electronic information, integrated circuit, light industry, textiles, household electrical appliances, mon mechanical and electrical products and so on..(3) With the entirely implementation of China39。PreambleThe 11th FiveYear Plan on Foreign Capital Utilization, which is an important part of the 11th FiveYear Plan of China39。 investment. In respect of other foreign investments mainly through overseas stocks financing, great progress has been made. By the end of 2005, 122 panies from the mainland have been listed in Hong Kong and other overseas stock exchanges, and a total of $ billion of funds have been raised (excluding red chip enterprises). A total of 34 overseas institutions are admitted as qualified foreign institutional investors (QFII).(2) We have made prominent achievements in receiving a new round of international manufacturing industry transfer. During the 10th FiveYear Plan, China successfully grasped the opportunities of structural adjustment and transfer of global manufacturing industry, brought in large amount of foreign direct investment in the manufacturing industry, and thus has preliminarily bee one of the important bases of production in the world. The foreign investments that were absorbed in fundintensive and technologyintensive industries obviously increased, and many large foreigninvested projects that had been prepared for years were carried out during the 10th FiveYear Plan. Foreigninvested enterprises played good demonstration roles in respect of technology, management, philosophy of business operation, etc., propelled the marketization and internalization of China39。 ability to optimally allocate funds .(5) Capacities of managing foreign debts have been further enhanced, and the foreign debt scale is in step with the level of the national economic development and the situation of the international balance of payment. With regard to the tendencies which foreign debts of China took on in recent years, namely, the flow increased by times, the total scale grew rapidly, and shortterm foreign debts took up a large proportion, the administrative department of foreign debts successively promulgated related provisions, effectively controlled the growth of foreign debts and adjusted the structure of foreign debts in a timely manner, so as to keep the debt service ratio, liability ratio, and debttoGDP ratio of China39。 independent innovations. Fifth, the existing administration system of foreign capital utilization urgently needs to be improved, and part of presently applicable policies are not favorable to create an environment for fair petition between domestic enterprises and foreigninvested enterprises. Sixth, a small number of projects of foreign loan utilization were not strictly administered, the fund utilization efficiency was low, and the debt repayment was difficult. Seventh, the proportion of shortterm foreign debts increased rapidly, and the potential risks of foreign debt were increasing.II. Guidelines and Overall Strategic Objective of Foreign Capital Utilization of China During the 11th FiveYear Plan PeriodDuring the 11th FiveYear Plan, the overall domestic and foreign environments in respect of foreign capital utilization that China faces still tend to be good, which will create conditions for China to improve the quality and level of foreign capital utilization, and to continue keeping the foreign capital utilization in a large scale, as well. The 11th FiveYear Plan is, at the same time, a period when the external environmental restrictions and internal risks of the economic development of China are concentrated. On one hand, uncertainties for the world economic growth still exist, the global economic development is unbalanced, the international financial market is still likely to suffer from violent turbulence, the trade protectionism tendency is obvious, and the petition among all the countries for international capitals bees increasingly severe. On the other hand, some prominent problems still exist. For example, China39。 to propel the construction of a more open independent innovation system, intensify the integrated innovation ability and the reinnovation ability after introduction of new technologies。 we shall greatly improve the level of opening up to the outside world in the service industry。 the total scale of foreign capital utilization shall grow steadily on the basis of the 10th FiveYear Plan。 technical level and product class and enhancing enterprises39。s mitments to the WTO, lay emphasis on bringing in overseas insurance panies and other financial institutions which are specialized in the areas such as pension, medical, liability and agricultural insurance and so on. We shall encourage foreigninvested insurance panies to conduct business by setting up business institutions in the central and western regions and in northeastern regions. We shall, on the premise that the Chinese party controls the shares, allow stateowned insurance panies to bring in foreign strategic investors and allow qualified domestic joint stock insurance panies to bring in foreign investments. We shall, through foreign capital utilization, speed up introduction of advanced foreign insurance products, operational modes and senior management talents so as to enhance the petitiveness of China3