Foreign investment attracted by stability
By Wang Yanlin |
April 20, 2011, Wednesday
|
Print Edition
Print Edition
FOREIGN direct investment in China surged 32.9 percent from a year earlier to US$12.5 billion in March, as the country continued to prove attractive because of its steadily growing economy.
Between January and March, foreign investment advanced 29.4 percent year-on-year to US$30.3 billion, the Ministry of Commerce said yesterday.
"Foreign investors have shown renewed interest in emerging markets after the settlement of the global financial crisis," said Jing Ulrich, managing director of JP Morgan. "China is no doubt the top choice because of its stable political and business environment."
Li Maoyu, an analyst at the Changjiang Securities Co, said unrest in some other countries could help China attract more foreign investment.
More risks
"We hear a lot of complaints about China's rising labor costs," Li said. "Foreign investors should understand other places may offer a cheaper workforce, but unsteady political conditions may make them deal with more risks than investing in China."
China's gross domestic product expanded by 9.7 percent in the first three months, more than expected, keeping it in line with the 9.8 percent pace in the previous quarter.
With the country aiming to rely more on domestic consumption to drive the economy, more foreign investment is being directed into the services sector. In the first quarter, foreign investors pumped US$14.3 billion into China's services industry, up 36.4 percent from a year earlier.
Also, a record US$2.3 billion in foreign investment went to China's western areas to the end of March, up 84.1 percent on an annual basis.
Revenues cut
Ministry spokesman Yao Jian said the value of China's new contracts in Libya dropped 46.9 percent from a year earlier in the first quarter, and business revenues there were cut by 11.8 percent.
In total, China's outbound non-financial investment expanded 13.2 percent year-on-year to US$8.5 billion in the first three months. Investments in Australia and the European Union turned out to be a highlight, both jumped more than 150 percent annually.
A ministry report issued yesterday warned of a less favorable investment environment for China's traders and investors this year.
It said the global business environment did not allow people to be optimistic because of growing protectionism, more technological restrictions on exports, and some unfair intellectual property protection.
Shanghai was a star performer in attracting foreign investment. In March, contracted foreign investment surged 66.8 percent from a year earlier to US$2.25 billion, the Shanghai Statistics Bureau said.
Between January and March, foreign investment advanced 29.4 percent year-on-year to US$30.3 billion, the Ministry of Commerce said yesterday.
"Foreign investors have shown renewed interest in emerging markets after the settlement of the global financial crisis," said Jing Ulrich, managing director of JP Morgan. "China is no doubt the top choice because of its stable political and business environment."
Li Maoyu, an analyst at the Changjiang Securities Co, said unrest in some other countries could help China attract more foreign investment.
More risks
"We hear a lot of complaints about China's rising labor costs," Li said. "Foreign investors should understand other places may offer a cheaper workforce, but unsteady political conditions may make them deal with more risks than investing in China."
China's gross domestic product expanded by 9.7 percent in the first three months, more than expected, keeping it in line with the 9.8 percent pace in the previous quarter.
With the country aiming to rely more on domestic consumption to drive the economy, more foreign investment is being directed into the services sector. In the first quarter, foreign investors pumped US$14.3 billion into China's services industry, up 36.4 percent from a year earlier.
Also, a record US$2.3 billion in foreign investment went to China's western areas to the end of March, up 84.1 percent on an annual basis.
Revenues cut
Ministry spokesman Yao Jian said the value of China's new contracts in Libya dropped 46.9 percent from a year earlier in the first quarter, and business revenues there were cut by 11.8 percent.
In total, China's outbound non-financial investment expanded 13.2 percent year-on-year to US$8.5 billion in the first three months. Investments in Australia and the European Union turned out to be a highlight, both jumped more than 150 percent annually.
A ministry report issued yesterday warned of a less favorable investment environment for China's traders and investors this year.
It said the global business environment did not allow people to be optimistic because of growing protectionism, more technological restrictions on exports, and some unfair intellectual property protection.
Shanghai was a star performer in attracting foreign investment. In March, contracted foreign investment surged 66.8 percent from a year earlier to US$2.25 billion, the Shanghai Statistics Bureau said.
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