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China's expansion boosts FDI
Source: Bloomberg News |
September 16, 2011, Friday
|
Print Edition
Print Edition
FOREIGN direct investment in China climbed 11.1 percent in August from a year earlier as the nation's growth encourages companies from Volkswagen AG to Caterpillar Inc to expand.
Investment from overseas totaled US$8.45 billion last month, after expanding 19.8 percent in July, the Ministry of Commerce said in a statement on its website yesterday. For the first eight months, investment rose 17.7 percent to US$77.63 billion.
Businesses are turning to China to bolster sales as rising unemployment and government indebtedness damp confidence in developed nations. Premier Wen Jiabao said on Wednesday China will continue opening its economy to investors and encourage consumption to drive growth. China's economy grew 9.5 percent in the second quarter, from a year earlier.
"China remains the only bright spot amid the global financial turmoil," said Li Huiyong, an economist at Shanghai-based SWS Research Co. "Investment returns in China remain high and local authorities are keen to attract funds for new businesses."
China overtook the United States to become the world's biggest auto market in 2009. Companies, including Kia Motors Corp, VW, and Peugeot SA are unveiling new models to lure buyers, Klaus Paur, Shanghai-based managing director at Synovate Motoresearch, said on September 9.
VW, the first overseas carmaker to enter China three decades ago, needs more factories in the country to match market growth, CEO Martin Winterkorn said this week.
The German company opened its first engine reprocessing plant in China last month and said in November it plans to invest 10.6 billion euros (US$14.6 billion) through its two auto joint ventures in the country by 2015.
Caterpillar, the world's largest maker of construction and mining equipment, said last month it plans to open a new plant in Jiangsu Province to produce undercarriage components and track assemblies used on its hydraulic excavators.
Investment in China is rising even as US and European companies complain of discrimination. The European Union Chamber of Commerce in China said last week that laws and rules are hindering its members.
Investment from overseas totaled US$8.45 billion last month, after expanding 19.8 percent in July, the Ministry of Commerce said in a statement on its website yesterday. For the first eight months, investment rose 17.7 percent to US$77.63 billion.
Businesses are turning to China to bolster sales as rising unemployment and government indebtedness damp confidence in developed nations. Premier Wen Jiabao said on Wednesday China will continue opening its economy to investors and encourage consumption to drive growth. China's economy grew 9.5 percent in the second quarter, from a year earlier.
"China remains the only bright spot amid the global financial turmoil," said Li Huiyong, an economist at Shanghai-based SWS Research Co. "Investment returns in China remain high and local authorities are keen to attract funds for new businesses."
China overtook the United States to become the world's biggest auto market in 2009. Companies, including Kia Motors Corp, VW, and Peugeot SA are unveiling new models to lure buyers, Klaus Paur, Shanghai-based managing director at Synovate Motoresearch, said on September 9.
VW, the first overseas carmaker to enter China three decades ago, needs more factories in the country to match market growth, CEO Martin Winterkorn said this week.
The German company opened its first engine reprocessing plant in China last month and said in November it plans to invest 10.6 billion euros (US$14.6 billion) through its two auto joint ventures in the country by 2015.
Caterpillar, the world's largest maker of construction and mining equipment, said last month it plans to open a new plant in Jiangsu Province to produce undercarriage components and track assemblies used on its hydraulic excavators.
Investment in China is rising even as US and European companies complain of discrimination. The European Union Chamber of Commerce in China said last week that laws and rules are hindering its members.
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