With the ever-expanding opening of the domestic market, foreign business people will find more cooperative opportunities in China's commodity circulation sector, according to the Ministry of Internal Trade.

China is actively introducing advanced foreign management expertise to accelerate the technological progress and modern management of circulating enterprises.

Statistics showed a further opening of China s circulation sector. More than 220 internal trade enterprises have been authorized to engage in import and export. These are chiefly large and renowned businesses having extensive relations with domestic production enterprises and consumers. Foreign investors may set up trade partnerships with them in the future.

Foreign businesses will have more opportunities to set up retail sale joint ventures. Currently, the Chinese government allows the opening of one or two retail sale joint ventures in six large cities and five special economic zones, with the term of cooperation lasting 30 years or longer. The range of joint investment in the retail sector is expected to expand to provincial capitals and major tourist cities. In addition, wholesale joint ventures are likely to be approved in the future.

Foreign business people are also allowed to set up processing joint venture enterprises in the circulation sector. They can find extensive cooperative opportunities in grain and fodder processing, vegetable oil refining, meat and food processing, timber processing, renewable resources utilization, and biochemical and biomedical sectors. They will also have more opportunities in the hotel, catering and other service industries.

China's circulation sector needs large-scale technical renovation in terms of commercial infrastructure facilities, material and capital circulation, and information management, which currently lag behind advanced countries. It also needs to import advanced management expertise, technological know-how, technicians and equipment from abroad. This, undoubtedly, will create more opportunities for foreign investors.

(No. 10, 1998)