South China expected US$17 bln from U.S. firms

South China is expected to gain another US$17 billion of foreign investments from the U.S. companies in the following three years, according to the Guangdong Daily.

China's new labor Contract Law, which became effective on Jan 1, 2008, has increased labor cost, especially for labor-intensive industries, said Harley Seyedin, the President of the American Chamber of Commerce in South China,

However, it would have little impact on the U.S. firms as they mostly recruit technical and managing staff and pay them higher salaries than required by the law, said Seyedin.

Since China began its reform and opening-up policies in 1978, China has totally attracted US$2.11 trillion by the end of last year, up 23.5% from the previous year, and a cumulative total of 286,200 foreign-funded companies were approved to invest in China during the period, according to the State Administration for Industry and Commerce (SAFIC).