Foreign investors regain confidence
Print Edition
CHINA’S foreign direct investment rebounded in September, following two months of contraction and indicating a return of investor confidence in the world’s second-largest economy, the Ministry of Commerce said yesterday.
Foreign investors channeled US$9 billion into the country in the month, up 1.9 percent from the same period of last year. The growth, which was the fastest since April, reversed drops of 14 percent in August and 16.9 percent in July.
Despite the September upturn, foreign investment in the first three quarters fell 1.4 percent year on year to US$87.3 billion, with 17,247 new foreign ventures being established on the Chinese mainland.
South Korea and the United Kingdom were the biggest investors in the year through September, with their respective contributions rising 32.5 percent and 32.3 percent year on year.
According to ministry spokesman Shen Danyang, the September figures indicate that most multinational companies remain confident in China due to its stable social conditions, huge domestic market, skilled labor force and good infrastructure.
“China has fostered a strong competitiveness. It remains the world’s most attractive market for foreign investment and is also the fastest growing,” he said.
Shen denied there had been widespread withdrawals of foreign investment, saying that the government’s reforms will help to improve China’s production efficiency and strengthen investor confidence.
Foreign investment growth has entered a phase of comparatively slower expansion due to factors such as the economic restructuring, but stable growth is expected for the rest of the year, assuming there are no major changes to the global and domestic economic environments, he said.
The commerce ministry last month forecast that China’s inbound foreign direct investment for this year could hit an all-time high of US$120 billion.
Reflecting Beijing’s efforts to restructure the economy, foreign investment in China’s services sector in the first three quarters rose 8.7 percent year on year to US$48.6 billion, or almost 56 percent of the total. In comparison, investment in manufacturing fell 16.5 percent to US$29.6 billion.
Meanwhile, China’s outbound direct investment in the January-September period increased 21.6 percent year on year to US$74.9 billion, while the total for September alone was almost double the figure of a year earlier.
Investment in the first nine months rose 218 percent year on year in the European Union and 150 percent in Japan.
The investment data came after robust trade figures for September, which helped to ease fears of a growth slowdown.
The positive data were a reflection of the growing confidence among traders in the global economic outlook, and also in China’s greater efficiency following the government’s efforts to improve management and cut red tape, Shen said.
He dismissed claims by some analysts that the books had been cooked.
The release on Tuesday of key activity data for September — including industrial production, fixed-asset investment, retail sales and third-quarter gross domestic product figures — will help paint a clearer picture of China’s economy, analysts said.
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