Chinadaily.com.cn
     
    Go Adv Search

    Fifth FDI fall amid EU woes

    Updated: 2012-04-18 09:29

    By Ding Qingfen in Beijing and Chen Limin in Hong Kong (China Daily)

      Comments() Print Mail Large Medium  Small 分享按鈕 0

    Fifth FDI fall amid EU woes

    Investment focus to highlight western and central regions

    Fifth FDI fall amid EU woes

    Foreign direct investment fell for a fifth straight month in March as the European debt crisis worsened and the world's second-largest economy registered weaker growth.

    The Ministry of Commerce said the FDI outlook remains "grim" in the coming months. However, measures will be taken to "stabilize" FDI by encouraging foreign companies to invest in central and western regions.

    China's inbound investment last month dropped 6.1 percent, from a year earlier, to $11.76 billion, the ministry said on Tuesday.

    The February figure was a 0.9 percent drop.

    "Foreign companies invest less in a sluggish global economy," Shen Danyang, the ministry spokesman, said.

    "Tightening policies on the property market also led to a decrease in foreign investment," he said.

    Real estate makes up about 25 percent of FDI and foreign investment from the sector dropped by 6.3 percent year-on-year, in the first quarter.

    The corresponding period last year saw a gain of 38.6 percent.

    Investment from the European Union, grappling with a major sovereign debt crisis, tumbled 31.2 percent in the first quarter, from a year earlier, to $1.41 billion. Europe is a key trading partner and its economic troubles have had consequences for China as witnessed by the Friday announcement that the economy grew at the slowest pace in almost three years.

    However, Tuesday's figures showed capital flow from the United States rose 10.1 percent, in the first quarter, to reach $893 million. This reversed a falling trend over the last few months as the world's largest economy shows signs of recovery.

    From January to March, China's FDI fell by 2.8 percent from a year earlier to $29.48 billion, the ministry said. This is in contrast to a 29.4 percent increase during the same period last year.

    "Rising labor costs are also making China less attractive for foreign investors," Shen said.

    But falling FDI may be a short-term scenario as foreign companies eyeing the consumer market will invest, said Wang Zhile, director of the research center of transnational corporation, at the Chinese Academy of International Trade and Economic Cooperation, a think tank affiliated to the ministry.

    "I am rather optimistic about FDI in the long term."

    Frederic Neumann, managing director of Asian Economic Research at the Hongkong and Shanghai Banking Corp, agreed.

    "Many international companies are looking at other investment destinations, such as Southeast Asia, to take advantage of cheaper labor. But this doesn't mean that China is not an attractive investment destination. In fact, we still sense a lot of interest by capital market investors taking more exposure to China," Neumann said.

    Wang Chao, deputy minister of commerce, said recently that FDI could be "sustained" thanks to the country's stable economic growth and improving business sentiment.

    Samsonite International, the world's biggest luggage maker, said recently that it plans to add 25 more stores this year, on top of the 60 on the Chinese mainland, to tap growing demand.

    Moving inland

    Efforts will be enhanced to guide foreign companies in investing in central and western regions.

    Foreign capital into the eastern region dropped, in the first quarter, by 3.66 percent, but FDI into central areas grew by 20.72 percent, the ministry said.

    Samsung Electronics, Asia's largest consumer-electronics provider, announced, in early April, a $7-billion investment in Xi'an, Shaanxi province, to make a memory chip widely used in smart phones and tablet computers. This is the largest foreign investment the western region has ever absorbed.

    Contact the writers at dingqingfen@chinadaily.com.cn and chenlimin@chinadaily.com.cn

    Related Stories

    China FDI continues falling in March 2012-04-17 15:46
    China's FDI down 0.9% in Feb 2012-03-15 10:18
    Developed countries targeted for FDI 2012-02-23 08:05
    China's FDI falls 0.3% in Jan 2012-02-16 11:03
    免费A级毛片无码无遮挡| 国产亚洲精久久久久久无码77777 国产又爽又黄无码无遮挡在线观看 | 人妻丰满av无码中文字幕| 亚洲大尺度无码无码专区| 久久久久成人精品无码中文字幕 | 久久久久亚洲av无码专区喷水| 色婷婷综合久久久久中文字幕| 蜜臀av无码人妻精品| 亚洲AV无码一区东京热| (愛妃視頻)国产无码中文字幕| 无码精品人妻一区二区三区AV| 亚洲AV无码一区二区乱孑伦AS| 日本中文字幕高清| 人妻少妇久久中文字幕一区二区 | 久久99久久无码毛片一区二区 | 久久Av无码精品人妻系列| 无码人妻丰满熟妇啪啪网站| 日本三级在线中文字幕在线|中文| 日韩经典精品无码一区| 国产AV无码专区亚洲A∨毛片| 无套内射在线无码播放| 无码AV动漫精品一区二区免费| 人妻无码αv中文字幕久久| 中文字幕热久久久久久久| 中国少妇无码专区| 无码专区一va亚洲v专区在线 | 中文字幕在线精品视频入口一区| 蜜臀AV无码国产精品色午夜麻豆| 6080YYY午夜理论片中无码| 久久久久无码精品国产不卡 | 日韩精品无码一区二区中文字幕| 无码爆乳护士让我爽| 精品日韩亚洲AV无码一区二区三区 | 亚洲AV日韩AV永久无码绿巨人| 国内精品人妻无码久久久影院导航 | 亚洲gv天堂无码男同在线观看| 国模无码一区二区三区| 亚洲国产精品无码久久久久久曰 | 日本免费中文视频| 91天日语中文字幕在线观看| 中文字幕在线无码一区|