FDI in China hit US$72.4 billion last year, up from the initially-reported figure of US$60.3 billion, according to reports. The increase is thought to be mainly due to big investments in the banking, insurance and securities sectors (an ommission in the original statistics that I noted here ).
In this latest case of significant mis-counting (see here for the GDP revision  and for other examples, including interesting analysis by Standard Chartered, see here ) the Houston Chronical notes:
- ”Because in the past most foreign investment had been directed to China’s manufacturing sector, [the official] suggested that statisticians had overlooked last year’s flow of funds into financial services.”
Perhaps they will ask Ernst & Young (“Non-Performing Accountants – and Loans “) to help with their counting next time. In any case, we continue to report all statistics with a pinch of salt. For added confidence, I always recommend that business plans and decisions are based, not on the results of Google searches, but on professional market research that draws on several sources, and which includes a reality check from experienced people on the ground.
If you want some research done, please let us know.
See news source:
Foreign Investment in China Up $72B in ’05 
Houston Chronicle – United States
BEIJING â€” Strong foreign investment in financial services like banking and securities boosted China’s total foreign direct investment last year to $72.4 …