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China sees FDI drop in January as less from European investors
By Wang Yanlin |
February 17, 2012, Friday
|
Print Edition
Print Edition
FOREIGN direct investment in China fell for the third straight month in January as European investment continued to plunge amid its deepening debt crisis.
In comparison, capital from the US picked up due to investments in Shanghai Disneyland.
Foreign investment in China in January totaled US$9.99 billion, 0.3 percent less than the same month last year, the Ministry of Commerce said yesterday.
That was an improvement on December's reduction of 12.7 percent and November's 9.7 percent.
The 27-member European Union placed US$452 million in China last month, down 42.5 percent from a year earlier.
Investment from the US, however, jumped 29 percent annually to US$342 billion, a reversal of the previous year's drop of 26 percent.
"China will have to confront many difficulties this year in attracting foreign investment," said Shen Danyang, a ministry spokesman. "The global economic uncertainties make investors more cautious about investment, while China speeds up its own economic restructuring process that may lift requirement for overseas projects."
Shen said China remained one of the most attractive destinations for foreign investment because of its stable economic and political environment.
China's gross domestic product expanded 9.2 percent from a year earlier last year, cementing its position as the world's second-largest economy.
"The vast domestic market in China is a magnet for foreign investors when demand in other countries may remain weak," said Xue Jun, an analyst at CITIC Securities Co.
Foreign investment in China's manufacturing sector lost 0.04 percent from a year earlier to US$4.7 billion in January, while that in the service industry fell 4.62 percent to US$4.5 billion.
Shen attributed investment rise from the US to capital injected into Shanghai Disneyland. But he did not reveal the amount.
According to earlier reports, the core facilities of Shanghai Disneyland, including infrastructure of roads and pipelines, will be under construction in April. The first phase of the park will cost 24.5 billion yuan (US$3.8 billion), and an additional 4.5 billion yuan will be spent on building support facilities.
In comparison, capital from the US picked up due to investments in Shanghai Disneyland.
Foreign investment in China in January totaled US$9.99 billion, 0.3 percent less than the same month last year, the Ministry of Commerce said yesterday.
That was an improvement on December's reduction of 12.7 percent and November's 9.7 percent.
The 27-member European Union placed US$452 million in China last month, down 42.5 percent from a year earlier.
Investment from the US, however, jumped 29 percent annually to US$342 billion, a reversal of the previous year's drop of 26 percent.
"China will have to confront many difficulties this year in attracting foreign investment," said Shen Danyang, a ministry spokesman. "The global economic uncertainties make investors more cautious about investment, while China speeds up its own economic restructuring process that may lift requirement for overseas projects."
Shen said China remained one of the most attractive destinations for foreign investment because of its stable economic and political environment.
China's gross domestic product expanded 9.2 percent from a year earlier last year, cementing its position as the world's second-largest economy.
"The vast domestic market in China is a magnet for foreign investors when demand in other countries may remain weak," said Xue Jun, an analyst at CITIC Securities Co.
Foreign investment in China's manufacturing sector lost 0.04 percent from a year earlier to US$4.7 billion in January, while that in the service industry fell 4.62 percent to US$4.5 billion.
Shen attributed investment rise from the US to capital injected into Shanghai Disneyland. But he did not reveal the amount.
According to earlier reports, the core facilities of Shanghai Disneyland, including infrastructure of roads and pipelines, will be under construction in April. The first phase of the park will cost 24.5 billion yuan (US$3.8 billion), and an additional 4.5 billion yuan will be spent on building support facilities.
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