The following factors need to be considered as relates to the investment environment in China for foreign capital, for the economy in general, as well as factors related to the mining industry:

1. China's political situation is stable and the people live and work in peace and general contentment, creating the necessary social conditions for attracting foreign investment.
2. The recent establishment of a market-driven economic system and the gradual perfecting of laws and regulations have created a favorable legal environment for foreign investment.
3. The raising of educational levels and global information networks through vastly improved telecommunications and technologies have greatly changed ideological ideas and reduced discrepancies of languages, cultures and customs, further enhancing the social environment attractive to foreign investors.
4. The cost advantage of an abundant cheap labor force provides tremendous opportunities for foreign investors to invest in the industries that are labor-intensive. Most recent statistics indicate that over half of the foreign investment was in such enterprises. As well, China possesses a large skilled labor force that is receiving proper training and education and can meet the requirements of foreign investment in higher-tech industries. In the fields of enterprise management, law service and accounting, etc, where there has been a deficiency for special sophisticated talents, efforts are being focused to upgrade this fairly rapidly.
5. Industrial policies have adapted to the requirements of a market-driven economy and to international rules, especially with China’s commitments to the WTO.
6. The Chinese government maintains a continued commitment to further improve the investment climate. The State Council has eliminated or modified thousands of items that were previously subject to administrative examination and approval, many of which relate to the mining industry.
7. China is expending hundreds of billions of dollars to build up the country’s infrastructure; highways, bridges, airports, electricity, water, etc. Many areas, until recently, unattractive to investors for their inaccessibility are opening up quickly and many mining properties, known to have resources and previously thought un-exploitable, are being considered at again.
8. The government has promised to provide more service and information to the foreign investment community. In mining, the Minister of Land and Resources plans to increase information availability by establishing ministerial and provincial geo-information centers and constructing an online national information system. Many provinces have completed their own databases to further assist investors.
9. The construction of a “mining rights” market is pressing ahead. In 1996 the Amendment to the Mineral Resources Law created a mechanism primarily in accordance with international practice. Integrated rule and regulations were established in 1998 and eventually an market-based system of mining rights was introduced in 2001 in 10 pilot areas and eventually spread throughout the country. Rights that allow mining and exploration through bidding, auction and listing. Old rules restricting exploration and mining to Chinese nationals were abolished and foreign owned entities, abiding by certain parameters and conditions, can register for geological exploration and mining. Furthermore certificates previously limited to administrative jurisdictions can now be valid nationwide.

For more information the investment climate in China, an impressive, comprehensive report on the investment climate worldwide, written and compiled by the World Bank entitled “A Better Investment Climate for Everyone” with several chapters focused on China, can be found on-line at:

http://siteresources.worldbank.org/INTWDR2005/Resources/complete_report.pdf