FDI flows into China at $8.38 billion in August
China attracted USD 8.38 billion through Foreign Direct Investment (FDI) in August, up 0.62 percent year-on-year but lower than July figures, the Ministry of Commerce (MOC) on Tuesday said.
Beijing: China attracted USD 8.38 billion through Foreign Direct Investment (FDI) in August, up 0.62 percent year-on-year but lower than July figures, the Ministry of Commerce (MOC) on Tuesday said.
The increase was down sharply from a 24.13 percent jump in July and 20.12 percent growth in June, but higher than May's growth rate of 0.29 percent, the data released by the Ministry said.
In the first eight months of the year, China's FDI inflow totalled USD 79.77 billion, up 6.37 percent from the same period last year, despite the slowdown of the economy, MOC spokesman Shen Danyang told media here.
The data does not cover incoming investments in banking, securities and insurance sectors.
Shen attributed the subdued growth rate to a higher comparative base in August 2012, when the monthly FDI inflow rose considerably from those in July 2012. ??? "China has seen year-on-year FDI growth for seven straight months since February, which demonstrated the competitiveness of the Chinese economy and foreign investors' recognition of the business environment in China," state-run Xinhua news agency quoted Shen as saying.
The FDI growth will remain relatively stable in the next few months and this year's total FDI inflows can be expected to exceed the 2012 level, Shen said, adding, China emphasises more the quality and structure of foreign investment than the growth figures.
From January to August, China approved the establishment of 14,480 foreign-invested enterprises, down 8.22 percent from a year earlier.
The services sector saw a steady increase of FDI inflows in the first eight months of the year, up 13.5 percent and accounted for 49.84 percent of the total FDI inflows during the period.
Foreign investment in the manufacturing sector fell 3.27 percent, taking a 40.9 percent share of the FDI inflows, Shen said.
Direct investment from the US and European Union jumped 18.04 percent and 4.27 percent, respectively, to USD 2.50 billion and USD 5.44 billion in January-August.
Meanwhile, Chinese investment in overseas non-financial sectors rose 18.5 percent to USD 56.5 billion in the first eight months, the ministry said.
Customs data also indicated that exports and imports have further recovered due to a stable yuan and increasing external demand.
Trade surplus widened by 8.4 percent to USD 28.52 billion in August, the highest since January this year. ??? "The macroeconomic situation in the past few months showed that the country's economy is developing in a positive trend," Shen said, adding, the trend will not be affected by short-term difficulties in some countries or the so-called financial crisis in some emerging markets.