Source: CCTV.com

03-23-2009 11:11

Special Report:   China Development Forum 2009

During Sunday's forum, Commerce Minister Chen Deming said it would be wrong to assume China didn't welcome foreign investment. The comments come after the government rejected Coca-Cola's bid to acquire China Huiyuan Juice Group.

During Sunday's forum, Commerce Minister Chen Deming said  it would be wrong to assume China didn't welcome foreign  investment.

 

Speaking at the China Development Forum 2009, Commerce Minister Chen Deming said the attempted acquisition took place between two foreign companies and didn't involve the country's policy on investment. Huiyuan is a firm registered in Cayman Islands, located in the Caribbean region. And Coca-Cola is a US-based company. The rejection was based on concerns over whether the two companies' sales in China would create a monopoly.

Commerce Minister Chen Deming says, "our review shows the merger would lead to monopoly, and thus affect the interests of consumers and smaller competitors.

That's why we vetoed the deal. But in the meantime, we hope that Coca-Cola and Hui Yuan will continue to develop in China. And we welcome more foreign firms to invest in China."

Chen also emphasized that China has approved many foreign applications for acquisitions since the country's anti-monopoly law took effect last year, such as the United States company Johnson & Johnson's purchase of Beijing Dabao Cosmetics.

Since China's anti-monopoly law was introduced in August last year, 40 applications have been received and 24 mergers and acquisitions have been approved.

Chen said that China would continue to actively use foreign investment and fight against protectionism.

The country would continue to guide more foreign investment in high-tech, energy saving and green industries as well as the service sector. It will also introduce more investment to less-developed central and western regions.

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Editor:Qin Yongjing