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    Investment from US declines 28%

    By Ding Qingfen (China Daily)
    Updated: 2011-05-18 09:15
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    Robert Poole, vice-president of China Operations at the US-China Business Council, told China Daily that a number of companies plan to boost investment in China.

    General Motors said it will invest $5 billion to $7 billion over the next five years, aiming to double its sales to 5 million units by 2015.

    Starbucks said recently it was planning to expand its network in China to 70 cities from the current 35.

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    Investment from US declines 28% Chinese FDI has 'great potential' to benefit US: Report

    "US businesses are generally positive about China's investment environment," Yao Jian, commerce ministry spokesman, said at the news briefing on Tuesday.

    China announced in April 2010 that it would try to attract more foreign investment in the high-tech, energy and service sectors, a switch in focus from low-end manufacturing.

    "We expect the US to encourage more high-end investment into China, particularly in the service sector," Yao said.

    China's service sector led the way in absorbing FDI from January to April, with investment growing by 31.26 percent to $18.27 billion, accounting for 47.1 percent of the total FDI.

    FDI increased by 26.03 percent year-on-year to $38.8 billion during the first four months.

    "China enjoys unrivaled advantages in attracting FDI," the academy's Song said.

    "It is a rapidly growing economy which creates a huge market and is a perfect manufacturing base."

    The April figure was down from an increase of 32.9 percent in March, and the lowest monthly figure this year.

    From January to April, China's overseas direct investment (ODI) grew by 17.5 percent to $13.4 billion, with just over 31 percent, or $4.2 billion, involving mergers and acquisitions.

    China's ODI in the non-financial sector rose last year by 36.3 percent to $59 billion.

    Zheng Chao, commercial counselor at the Department of Outward Investment and Economic Cooperation at the Ministry of Commerce, said the US, the EU and Latin-America will be the major destinations for China's ODI.

    Chen Deming, commerce minister, currently on a visit to Brazil, was quoted by Reuters as saying that China is mulling investment worth $1 billion in the country.

    Li Fangfang contributed to this story.

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