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Sunday, 18 July 2010 - China's premier says investment climate is stable
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    Read more with google mobile : China's premier says investment climate is stable

    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World China's premier says investment climate is stable By CARA ANNA,Associated Press Writer - Saturday, July 17 Send IM Story Print BEIJING – China's premier tried to reassure executives of leading international companies Saturday that his country's investment climate was stable, and said Beijing would not block exports of rare metals needed to make computers and mobile phones. Wen Jiabao made the comments during a meeting with German Chancellor Angela Merkel and business leaders that featured pointed concerns on both sides. "There is an allegation that China's investment environment is worsening," Wen said, the state-run Xinhua News Agency reported. "I think it is untrue." Siemens AG's chief executive, Peter Loescher, appealed to the Chinese to make sure that investments are carried out in a fair manner, without giving preference according to the nationality of the bidding party. The CEO of chemical giant BASF SE, Juergen Hambrecht, said investments in China are often linked with a requirement to transfer technology. "This doesn't quite correspond with our idea of partnership," German news agency DDP quoted him as saying. Such concerns from Europe's biggest economy were also reflected in a World Bank report released this month that said China is one of the world's more restrictive places for international direct investment. But Wen was quick to point out that foreign money continues to flood into the country. That wouldn't happen, he said, if the investment climate were deteriorating. Foreign direct investment in China rose 39.6 percent in June over a year ago to $12.5 billion, the government said Thursday. For their part, Chinese business leaders said it remains difficult to get visas, DDP reported. Despite concerns, trade between China and Germany runs more than $100 billion a year. Chinese and German companies, including Siemens, have signed deals worth billions of dollars during Merkel's visit to make trucks and power equipment. Wen on Saturday also addressed tech industry concerns about Beijing's announcement last year that it would create a reserve for exotic metals used in computers, mobile phones, hybrid cars and other high-tech products. China produces nearly all the rare earths used in lightweight batteries for such devices. "Regarding certain raw materials and rare earths in particular, it is widely seen as a very new and important problem because we are a little bit worried about the conditions for access, as we don't have such raw materials," Merkel said after one of the German business leaders brought up the topic. Wen said China would not block their export but they should be sold at a reasonable price and volume, Xinhua reported. China accounts for 95 percent of global production and about 60 percent of consumption of rare metals, including dysprosium, terbium, thulium, lutetium and yttrium, according to the U.S. Geological Survey. The United States and other countries have some deposits, and the U.S. met most of its own needs until the 1990s. But other countries cut production as low-cost Chinese ores flooded global markets. ___ Associated Press Writer Juergen Baetz in Berlin contributed to this report. Recommend Send IM Story Print Related Articles US-BUSINESS Summary Reuters - 26 minutes ago IMF/EU suspend talks with Hungary, warn on budget Reuters - 26 minutes ago AIRSHOW-Emirates to place $5 bln Boeing order Reuters - 1 hour 48 minutes ago Argentina welcomes results of China trade talks AFP - 2 hours 8 minutes ago Many forks loom in road to AIDS vaccine Reuters - Sunday, July 18 News Search Top Stories Greece making good progress on debt, risks remain: IMF Paris Hilton caught with cannabis in handbag Russia signs key gas agreement with Bulgaria Scandals spell trouble for Gibson's tarnished star AIG to pay 725 million dollars to settle US fraud lawsuit More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Paris Hilton caught with cannabis in handbag Omega imbalance can make obesity 'inheritable': study Scandals spell trouble for Gibson's tarnished star Euro hits $1.30 for first time since May 10 AIG to pay 725 million dollars to settle US fraud lawsuit More Most Viewed » Reclusive top mathematician turns down prize, again Germany's 'Octopus oracle' keeps perfect record Who's right - the dolphin or the octopus? 3 Russian spy suspects due in US court More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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