Shanghai continues to record expanding foreign investment
By Wang Yanlin |
May 18, 2012, Friday
|
Print Edition
Print Edition
FOREIGN direct investment in Shanghai continued to expand in April, in contrast to the national trend of falling investment from overseas and the city's own weakening economy.
Shanghai attracted US$2.07 billion of contracted foreign investment last month, up 33.2 percent from a year earlier, the Shanghai Statistics Bureau said.
The pace quickened from the 2.7 percent rise in March and compared with February's 29.3 percent.
Physically allocated foreign investment increased 15.9 percent to US$1.39 billion last month, slower than the surge of 46 percent in March.
"Shanghai is trying to brave the economic difficulties by continuously improving the city's business environment and making it more investment-friendly," said Wang Zehua, a bureau analyst. "When uncertainties are all around the world, investors may feel safer to put their money in Shanghai."
Others attributed the city's recent strong growth of inbound foreign investment to the Shanghai Disneyland project.
Construction of the core facilities of Shanghai Disneyland, including roads and pipelines infrastructure, began last month.
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 support facilities such as hotels, shops, restaurants and entertainment venues.
In contrast, foreign direct investment in China contracted for a sixth straight month in April by falling 0.74 percent.
Shen Danyang, a Ministry of Commerce spokesman, said sluggish economic growth around the world, fiercer competition for new investment and China's rising production costs all contributed to the fall.
Shanghai aims to attract at least US$10 billion in foreign direct investment each year by 2015, the Shanghai Commission of Commerce said earlier in a guideline for foreign investment.
A mature market system, skilled workforce, efficient government and transparent laws should be major reasons for foreign investors to choose the city, instead of preferential policies, the commission said.
However, that goal could be overshadowed by the city's weakening economic growth. Shanghai's gross domestic product expanded just 7 percent in the first quarter, the slowest in 18 months and the weakest among China's provinces and municipalities.
The city's exports and imports both declined in April, the first "twin cuts" since October 2009. Industrial production was down 0.2 percent and fixed-asset investment in the first four months also lost 0.4 percent.
Shanghai attracted US$2.07 billion of contracted foreign investment last month, up 33.2 percent from a year earlier, the Shanghai Statistics Bureau said.
The pace quickened from the 2.7 percent rise in March and compared with February's 29.3 percent.
Physically allocated foreign investment increased 15.9 percent to US$1.39 billion last month, slower than the surge of 46 percent in March.
"Shanghai is trying to brave the economic difficulties by continuously improving the city's business environment and making it more investment-friendly," said Wang Zehua, a bureau analyst. "When uncertainties are all around the world, investors may feel safer to put their money in Shanghai."
Others attributed the city's recent strong growth of inbound foreign investment to the Shanghai Disneyland project.
Construction of the core facilities of Shanghai Disneyland, including roads and pipelines infrastructure, began last month.
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 support facilities such as hotels, shops, restaurants and entertainment venues.
In contrast, foreign direct investment in China contracted for a sixth straight month in April by falling 0.74 percent.
Shen Danyang, a Ministry of Commerce spokesman, said sluggish economic growth around the world, fiercer competition for new investment and China's rising production costs all contributed to the fall.
Shanghai aims to attract at least US$10 billion in foreign direct investment each year by 2015, the Shanghai Commission of Commerce said earlier in a guideline for foreign investment.
A mature market system, skilled workforce, efficient government and transparent laws should be major reasons for foreign investors to choose the city, instead of preferential policies, the commission said.
However, that goal could be overshadowed by the city's weakening economic growth. Shanghai's gross domestic product expanded just 7 percent in the first quarter, the slowest in 18 months and the weakest among China's provinces and municipalities.
The city's exports and imports both declined in April, the first "twin cuts" since October 2009. Industrial production was down 0.2 percent and fixed-asset investment in the first four months also lost 0.4 percent.
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