TNAG-1458-FCO40-1982-Relations-between-Hong-Kong-and-China-1986 — Page 90

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66.

Notwithstanding these achievements, there are

still areas where further improvements are urgently needed. For most investors, unpredictable policy measures and complicated bureaucratic controls adversely affect

their incentive to make commitments. In an era of

economic reforms, some changes in economic policies are to be expected, but too frequent and too drastic changes are

disturbing to the general investment environment. In

respect of bureaucratic controls, it is obvious that

complicated rules will only confuse the investors. Clear

and simple guidelines can be understood and accepted much more easily. It would also be a great improvement if investors did not need to deal with so much "red-tape".

Recently, the State Economic Commission has set up a foreign co-operation and co-ordination centre to help

Sino-foreign joint ventures to tackle their business

problems. It will be a great help to foreign investors if

this centre can function effectively.

67.

Following the recent intensification of complaints from foreign investors, the Ministry of Foreign

Economic Relations and Trade, the State Economic

Commission and the State Council's Office of the Special Economic Zones are jointly conducting a nationwide survey to investigate the problems facing the Sino-foreign joint

ventures and wholly foreign owned enterprises in China,

and to map out solutions for them. It was reported in the

press that the State Council was keen to bring about at least seven changes to improve the conditions for foreign

investors. These changes include :

establishing a reasonable salary structure for

Chinese workers;

verifying inconsistent regulations issued by different Chinese departments;

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