Foreign Direct Investment Up by more than 2 Percent in June
The country’s foreign direct investment inflows has increase at an annual pace of 2.2 percent for the first six months and is up modestly for June which showed a cautious investor optimism on the second largest economy of the world. The Ministry of Commerce stated that China has attracted around US$ 63 billion in foreign direct investment in the first six months. Inflows for June increased by .2 percent compared to a year earlier from US$14 billion their 16th straight month of gains.
Foreign direct investment is considered an important gauge of the health of a country’s economy in which the China’s vast factory sector is oriented but is only a small contributor to the overall capital flows compared to exports that was worth around US$ 2 trillion in 2013.every year the foreign direct investment inflows in China maintained a steady growth since the country joined the World Trade Organization wherein inflows have reached a record high if US$118 billion for 2013.
Data gathered from the Ministry of Commerce has shown that foreign direct investment coming from Southeast Asian nations has posted the biggest decrease in the first six month which is down by 19 percent or at US$ 3.4 billion. Meanwhile the Ministry of Commerce from Britain had the biggest increase which is up by 76 percent or by US$ .7 billion. Outbound direct investment coming from non financial firms from January and June has reached US$ 43 billion a 5 percent decrease from a year earlier.