China says will step up FTA negotiation with SL next year

Chinese government said it was looking to step up negotiations with Sri Lanka with regards to the proposed Free Trade Agreement (FTA) between the two countries. 

In an effort to further boost trade and investment ties with global partners, China’s Commerce Minister Gao Huchengon told Xinhua news agency that his government would kick-off negotiations on the forthcoming FTAs with Sri Lanka and Maldives, preferential agreements with South Korea and Japan, and the Regional Comprehensive Economic Partnership.

The year 2016 is likely to be the year for Sri Lanka to properly deliberate and ink trade deals, as the framework agreement for the Broader Economic and Technology Partnership with India is expected to be signed in middle part of the year. 

As China’s foreign direct investment (FDI) and outbound direct investment (ODI) witnessed an increase this year, putting the nation on track to meet its annual growth target, Minister Hucheng affirmed the main task would be to stabilize external demand, improve the quality of high-end manufacturing and adjust the industrial structure to attract quality FDI.

“We will also encourage more Chinese companies to invest abroad to diversify sales channels in the global market,” Hucheng was quoted as saying. 

Due to fast-growing manufacturing and service industries, China received US $ 620 billion in FDI during the 12th five-year plan period (2011-15), up 30 percent on the previous five-year plan. ODI grew 14.2 percent over the same period.

FDI to China is expected to reach US $135 billion this year, up almost 13 percent year-on-year (yoy), while ODI is forecast to hit US $128 billion, up 24 percent yoy.