Foreign fund pumped into China drops for 4th month
By Wang Yanlin |
October 20, 2012, Saturday
|
Print Edition
Print Edition
FOREIGN direct investment in China fell 6.8 percent from a year earlier to US$8.43 billion in September - a decline for the fourth straight month, according to data released by the Ministry of Commerce yesterday.
In the first three quarters, foreign investors pumped in a total of US$83.4 billion into the country, which was down 3.8 percent on an annual basis.
But China's non-financial outbound direct investment during the same period surged 28.9 percent to US$52.5 billion, up dramatically from last year's growth of 1.8 percent.
However, the growth pace slowed from the 39.4 percent jump in the first eight months.
"Although the overall economy has shown signs of stabilization, it is still not a complete recovery," said Li Maoyu, an analyst with Changjiang Securities Co.
"China should strengthen its efforts to improve the investment environment and allow foreign companies to participate in more activities to attract investment."
Foreign investment in the manufacturing sector fell 7.5 percent annually to US$36.9 billion in the first nine months, the ministry data showed. Funds flowing into China's service sector were also down 1.8 percent to US$39.4 billion, largely because of a 5.6 percent cut in foreign investments in the property market.
Excluding real estate, investment in the service sector expanded 1.6 percent.
Investment from the 27-member European Union decreased 6.3 percent during the January-September period, but separately, investment from Germany, the Netherlands and Switzerland swelled 29.1 percent, 38.9 percent and 142.3 percent, respectively.
Last month, the European Union Chamber of Commerce published a paper calling for equal parity with domestic companies in markets, procurement, treatment under the law, financing and subsidies.
US investment in China was also down by 0.6 percent during the same period, but bettered the 2.9 percent drop in the year to August.
With the anti-China tirade in the US political debates ahead of the elections next month, Shen Danyang, a ministry spokesman, said the negative views were propagated by the politicians.
"It is because of domestic politics that American politicians make such baseless comments on China," Shen said.
"Nobody will believe that the US is a complete loser in its trade dealings with China.
"Otherwise, how can trade and investment between the two countries develop to such a close level?"
Bilateral trade between China and the US expanded nearly 180 times since 1979 when the two countries established formal diplomatic relations, Shen said.
Last week, a US congressional report warned against allowing Chinese companies Huawei and ZTE Corp to supply critical telecom infrastructure.
While Sany Group Co is suing US President Barack Obama for blocking its plans to build wind farms in the US, Shen said Washington's decisions "hurt others without benefiting itself."
In the first three quarters, foreign investors pumped in a total of US$83.4 billion into the country, which was down 3.8 percent on an annual basis.
But China's non-financial outbound direct investment during the same period surged 28.9 percent to US$52.5 billion, up dramatically from last year's growth of 1.8 percent.
However, the growth pace slowed from the 39.4 percent jump in the first eight months.
"Although the overall economy has shown signs of stabilization, it is still not a complete recovery," said Li Maoyu, an analyst with Changjiang Securities Co.
"China should strengthen its efforts to improve the investment environment and allow foreign companies to participate in more activities to attract investment."
Foreign investment in the manufacturing sector fell 7.5 percent annually to US$36.9 billion in the first nine months, the ministry data showed. Funds flowing into China's service sector were also down 1.8 percent to US$39.4 billion, largely because of a 5.6 percent cut in foreign investments in the property market.
Excluding real estate, investment in the service sector expanded 1.6 percent.
Investment from the 27-member European Union decreased 6.3 percent during the January-September period, but separately, investment from Germany, the Netherlands and Switzerland swelled 29.1 percent, 38.9 percent and 142.3 percent, respectively.
Last month, the European Union Chamber of Commerce published a paper calling for equal parity with domestic companies in markets, procurement, treatment under the law, financing and subsidies.
US investment in China was also down by 0.6 percent during the same period, but bettered the 2.9 percent drop in the year to August.
With the anti-China tirade in the US political debates ahead of the elections next month, Shen Danyang, a ministry spokesman, said the negative views were propagated by the politicians.
"It is because of domestic politics that American politicians make such baseless comments on China," Shen said.
"Nobody will believe that the US is a complete loser in its trade dealings with China.
"Otherwise, how can trade and investment between the two countries develop to such a close level?"
Bilateral trade between China and the US expanded nearly 180 times since 1979 when the two countries established formal diplomatic relations, Shen said.
Last week, a US congressional report warned against allowing Chinese companies Huawei and ZTE Corp to supply critical telecom infrastructure.
While Sany Group Co is suing US President Barack Obama for blocking its plans to build wind farms in the US, Shen said Washington's decisions "hurt others without benefiting itself."
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