Sheng Huaren, vice chairman of the Standing Committee of the National People's Congress (NPC), explains the draft resolution on deputy election for the 11th NPC during the second plenary meeting of the Fifth Session of the Tenth NPC in the Great Hall of the People in Beijing, March 8, 2007. (Xinhua/Fan Rujun) Photo Gallery >>>

Xu Jialu, vice chairman of the Standing Committee of the National People's Congress (NPC), presides over the second plenary meeting of the Fifth Session of the Tenth NPC in Beijing, March 8, 2007. (Xinhua/Lan Hongguang) Photo Gallery >>>

    A research report from the World Bank said that stable political situation, sound economic development, broad market, rich labor sources as well as increasingly upgraded business infrastructure and government service in China are the major factors attracting foreign investment.

    Tax incentives are considered less important than transparent taxation and indiscriminate government policies, said the report.

    China adopted preferential tax policies at the end of 1970s when it started the economic reform and opening-up drive to attract foreign investment and boost its economy.

    By 2006, China has approved 594,000 foreign-funded enterprises, with 691.9 billion U.S. dollars of foreign fund used. In 2006, all the foreign-funded enterprises paid 795 billion U.S. dollars in all types of taxes, accounting for 21.12 percent of the total national tax revenue.

    The two drafts are expected to be voted by the lawmakers on March 16, when the session ends.

    Top Party and state leaders Hu Jintao, Wu Bangguo, Wen Jiabao, Jia Qinglin, Zeng Qinghong, Wu Guanzheng, Li Changchun and Luo Gan were present at the NPC plenary meeting, during which draft resolutions on the election of deputies to the 11th NPC were submitted to the lawmakers for deliberation.

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