FDI up 12% in First Half

Related entries: Economy, General, Investment

FDI just keeps on coming to China. Shanghai Daily reports that it was up 12% in the first half of 2007:

    “FOREIGN direct investment in China, the world’s fastest-growing major economy, climbed 12.2 percent in the first half from a year earlier.

    Spending rose to US$31.9 billion, the Ministry of Commerce said today on its Website. The pace has quickened from a 9.9 percent increase in the first five months. For June alone, foreign direct investment jumped 21.9 percent to US$6.6 billion, Bloomberg reported.”

Obvious attractions include low (if increasing) manufacturing costs for foreign companies that want to export goods (58 percent of 2006 exports were from foreign-invested companies, according to the Ministry of Commerce). But more investors are also said to be eyeing the potential for domestic sales as local consumption increases. (Not to mention continuing expectations for RMB appreciation).

See news source:

    China’s FDI rises 12% in first half
    Shanghai Daily

    Note: Ministry of Commerce FDI figures do not usually include investment in the financial sector, though this is not stated in the report.

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