Foreign Direct Investment Up by 16 Percent in January
For the month of January, China drew up around US$10 billion in foreign direct investment which is 16 percent up compared to a year earlier a sign that the Commerce Ministry said that the second largest economy in the world remains firm. Majority of new investment which is around US$ 6 billion was placed into China’s service industry but investment in the manufacturing sector went down by 21 percent.
A spokesperson for the ministry told the media during a press conference that the economic reforms and the opening up of the service sector is helping boost the confidence of foreign investors in the country. The double digit growth in foreign direct investment in January only showed that investment in the Chinese environment still remains favorable and is expected more foreign direct investment to maintain their momentum for this year.
China already shifted their focus in attracting more foreign direct investment inflows to high end manufacturing, energy saving, modern services sector and environmental industries. The country attracted a steady flow of foreign investment every year since the country has joined that World Trade Organization in 2001 which made businesses jumped at the chance to penetrate the most populous country in the world.
In January investment coming from 10 Asian countries and regions increased by 22 percent or US$9 billion. Investment coming from the US has increased by 34 percent or US$369 million but investment from the European Union has dropped 41 percent or US$482 million.