Home>News Center>China
       
 

FDI jumped by 13% to US$60.6b last year
By Xing Cheng (China Daily)
Updated: 2005-01-14 00:00

The flow of foreign direct investment (FDI) to the Chinese mainland increased by nearly 13 per cent to US$60.6 billion last year, according to statistics from the Ministry of Commerce.

The figure indicated most foreign investors shrugged off fears that the economy, which remains overheated in some sectors, will have a hard landing.

The ministry said the data showed that industries such as equipment manufacturing and electronic machinery are the hottest areas.

Foreign companies had set up 700 research and development centres on the mainland by the end of last year, said Chong Quan, the ministry's spokesman, adding that 30 multinationals had also chosen the mainland for their regional headquarters.

Though the country's economic cooling measures did not affect foreign investment generally, Chong said actual FDI in some overheated industries slowed.

The number of newly approved foreign-funded companies in the steel industry fell by 53 per cent, while contracted investment dropped 9 per cent.

Actual and contracted foreign investment in the cement industry sunk 67 and 74 per cent respectively. No foreign investment was made in the aluminium industry last year.

Chong said Northeast China has been the driver of FDI inflow.

Actual and contracted investment increased by 78 and 40 per cent respectively in the region, where the central government is currently engaged in a strategy of rejuvenation.

Hong Kong, the British Virgin Islands, South Korea, Japan and the United States were the top FDI investors.

The ministry did not release data for December, but by comparison, actual FDI that month reached about US$3.1 billion, a fall of more than 51 per cent year-on-year.

Contracted investment in December rose 26.7 per cent to US$18.4 billion.

But December's drop in actual foreign investment does not hint at a slowdown in FDI inflow next year, as foreign companies are usually reluctant to make investments at the end of the year, said Jin Bosheng, an expert from the Chinese Academy of International Trade and Economics.

"Momentum remains robust," Jin said.

The contracted foreign investment figures show lots of money is waiting to flow into China, he said.

Total contracted FDI reached US$153.5 billion last year, up 33.4 per cent year-on-year.



 
  Today's Top News     Top China News
 

Bilateral meeting sign of progress on IPR protection

 

   
 

Expressway planned to link Beijing, Taipei

 

   
 

Investors ask for no cut in tax favours

 

   
 

Straw to discuss arms ban in Beijing

 

   
 

Malaria threat emerges in tsunami zone

 

   
 

Gambling with public funds faces crackdown

 

   
  Top 10 phrases show what's on nation's mind
   
  Smuggling drops after GAC efforts
   
  Vice-mayor sentenced to death for bribe-taking
   
  Guangdong lifts ban on post-Spring Festival migrant job seekers
   
  Chinese scientists find dinosaur-eating mammal
   
  Train ticket price to be raised on Feburary 1
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  Related Stories  
   
Billion dollar FDI programme for Games
   
Shenyang attracts foreign capital
   
Stable rise in foreign investment expected
   
China's FDI up 22% during Jan-Nov period
   
Foreign investors gain more access
   
Foreign investors gain more access
   
Simplified procedures to lure int'l investors
  News Talk  
  It is time to prepare for Beijing - 2008  
Advertisement