China's FDI Inflows down 6.7 Pct in May
    2014-06-17 16:00:25     Xinhua      Web Editor: Wang
Foreign direct investment (FDI) into the Chinese mainland fell 6.7 percent year on year to 8.6 billion U.S. dollars in May, the Ministry of Commerce (MOC) said on Tuesday.

Foreign direct investment (FDI) into the Chinese mainland fell 6.7 percent year on year to 8.6 billion U.S. dollars in May, the Ministry of Commerce (MOC) said on Tuesday.

In the first five months of 2014, the FDI, which excludes investment in the financial sector, came in at 48.9 billion U.S. dollars, up 2.8 percent from the same period last year, the ministry said.

In January-May, the top five investors in the Chinese mainland were Hong Kong, Taiwan, Singapore, the Republic of Korea (ROK), and Japan. Investment from the ROK and the United Kingdom saw the biggest rises, up 87.9 percent and 62.2 percent year on year, respectively.

However, FDI from Japan slumped 42.2 percent from a year ago, while that from the United States fell 9.3 percent year on year. Investment from the European Union (EU) shed 22.1 percent in the first five months to 2.58 billion U.S. dollars.

Investment from the Association of Southeast Asian Nations (ASEAN) dropped 22.3 percent to 2.54 billion U.S. dollars, but MOC spokesman Shen Danyang denied it was affected by tensions with neighboring countries.

Shen attributed the drop to a high comparative base last year resulting from big projects and said the decline did not represent any trend.

"Our economic and trade cooperation with the ASEAN is not affected by current factors in the neighboring areas," he said, adding that economic cooperation between the two sides will maintain growth momentum.

But Shen noted that foreign investment into the service sector has been accelerating and it is a trend that is unlikely to be reversed.

In the first five months, FDI into China's service sector rose 19.5 percent year on year to 27.5 billion U.S. dollars, accounting for 56.2 percent of the total. Data in the first four months showed investment into the sector climbed 19.1 percent year on year.

On the other hand, investment in manufacturing dropped 16.5 percent to 17.4 billion U.S. dollars.

Shen explained that China announced many policy measures to boost the service sector amid its economic restructuring, providing more opportunities for foreign investors, and there is another key document being drafted to cover this area.

As for manufacturing, the spokesman noted that the sector tends to attract a smaller share of total FDI, but he expressed hope that some sections of the sector, including advanced manufacturing, will remain a magnet for foreign investment.

Tuesday's data also showed that foreign investors set up 8,744 new companies in the first five months of 2014, up 1.6 percent year on year.

Shen responded to a report from the EU Chamber of Commerce in China that found companies were less confident in China's business climate.

He said problems that EU companies encountered are not new and the government is striving to solve them. He said China holds advantages in attracting foreign investment although there is room for improvement.

In late May, the ministry announced a three-month pilot program to streamline the approval process for FDI projects.

Separate MOC data showed on Tuesday that China's outbound direct investment in non-financial sectors slumped 10.2 percent year on year to 30.81 billion U.S. dollars January-May due to plunges in major investment destinations.

But the United States saw investment from China soar 144 percent to 2.03 billion U.S. dollars, while Russia and Japan also saw surges of more than 100 percent due to relatively low bases in the same period last year.

Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Audio Reports more »
Biz Life more »
Policy more »
Markets more »

News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ