|
More capital flows into China
2003-03-14
China Daily
Foreign investors are paying increasing attention to China - already the world's largest recipient of foreign capital - and injecting another US$7.54 billion into the country in the first two months of this year.
The capital inflow is up 53 per cent on January and February last year, according to the Ministry of Foreign Trade and Economic Co-operation (MOFTEC).
This year's strong growth builds on last year's record foreign investment levels and is expected to last for quite some time, said analysts.
Despite dramatic cuts in cross-border investment worldwide, foreign capital has flooded into China since last year.
China surpassed the United States as the world's largest recipient of foreign investment last year after recording a US$52.7 billion inflow.
China's low manufacturing costs are a major attraction for foreign investors and they were an added advantage last year as competition intensified due to contracting international demand and a depressed global economy, said Long Guoqiang, a researcher with the Development Research Centre under the State Council.
China's entry to the World Trade Organization and greater transparency and stability in its laws, rules and policies have played a pivotal role in boosting foreign investors' confidence, he said.
But MOFTEC officials in charge of foreign investment said it is hard to predict how long the honeymoon between China and foreign investors is going to last.
Neighbouring countries are intensifying their efforts to attract foreign investment, they said.
|
.gif){kind=small}
.gif){kind=small}
