Surge in inward investment as capital from US rises by 34.9%
Print Edition
China’s foreign direct investment surged 16.11 percent in January compared with a year earlier, with cash infusions from Asian economies and the United States showing the steepest rises.
This was due to the country’s greater efforts in opening up and stronger investor confidence, the Ministry of Commerce said yesterday.
Foreign investors channeled US$10.76 billion into China, extending growth momentum for a 12th consecutive month.
The increase was bolstered by investment from the US, which jumped 34.9 percent to US$369 million. The group of 10 Asian countries and regions raised their investment by 22.16 percent to US$9.54 billion, with South Korea nearly tripling its input.
However, investment from the European Union fell 41.25 percent to US$482 million.
Shen Danyang, a ministry spokesman, said January’s double-digit growth confirmed foreign investors’ confidence in China’s economy and the quality of the nation’s investment climate.
“China’s new leadership has put much emphasis on reforms to allow the market a bigger role,” Shen said. “Such a strategy helps to strengthen investor confidence and enhance the charm of China for foreign investors.”
China’s stable economic and social status, great market potential, skillful human resources and good support facilities have strengthened China’s comprehensive competitiveness and made it a popular destination for foreign investment, Shen said.
As a sign of China’s growing efforts to restructure the economy, foreign investment flowing into China’s service sector grew 57.02 percent year on year to US$6.33 billion in January, a record that weighed 58.80 percent in the overall basket. In comparison, the manufacturing sector drew US$3.46 billion, down 21.69 percent on an annual basis.
China’s interior regions have become increasingly visible to foreign investors, with the capital pouring into central China jumping 89 percent and that in western China rising 71 percent.
Meanwhile, China’s outbound direct investment rose 47.2 percent to US$7.23 billion last month, higher than last year’s average growth of 16.8 percent.
China’s economy showed signs of moderation at the end of last year. But the latest set of data pointed to surprisingly good trade, sufficient credit and low inflation at the start of 2014 in the world’s second-largest economy.
A note by the Australia & New Zealand Banking Group Ltd said yesterday it would be better to interpret the data in conjunction with next month’s release which will combine January and February, to account for seasonal factors such as the Spring Festival holiday.
China’s gross domestic produce expanded 7.7 percent in the fourth quarter of last year, slowing a bit from the pace of 7.8 percent in the previous three months.
The World Bank estimates that China’s economic growth will remain at 7.7 percent this year.
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