During the 11th Five-Year Plan period (2006-2010), China will continue to actively and effectively utilize foreign funds, while taking the initiative to resist and eliminate risks to national security.

This is stated in the country's program on using foreign funds in the period, which was just formulated and issued by the National Development and Reform Commission.

The program promotes a transformation from paying attention to "quantity" to paying attention to "quality" in utilizing foreign funds during the period. Emphasis will be placed on importing advanced technologies and experienced and high-quality managing intellectuals instead of making up for the shortage of capital and foreign exchanges.

More attention should be paid to construction of ecological balance, environment protection, saving and comprehensively utilizing natural and energy resources, thus integrating utilization of foreign funds with updating of domestic industrial structure and raising of the technological level.

Efforts will be focused on direct foreign investment. It is necessary to encourage foreign funds to take part in reorganization or transformation of domestic enterprises in such forms as merging, share-purchasing or re-investment.

Except where related to national security, restrictions on foreign holding companies will be gradually lifted.

Meanwhile it is necessary to step up the pace of formulating and promulgating the Anti-Monopoly Law; give further details on the policies toward those sensitive industries or major enterprises which are related to the national safety, the national economy and people's livelihood; improve the industry-access system for foreign funds; strengthen examination and supervision of the merging cases which are related to the above-mentioned sensitive industries or major enterprises and involved in foreign funds so as to secure the state's control over the development of those strategic industries and major enterprises; and revise and publish the Law on Enterprises' Income Taxation that applies to both domestic and foreign funded enterprises.

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