Q1 foreign direct investment in China up 5.5%

Shanghaihectorgarcia

Foreign direct investment (FDI) into China increased 5.5 percent in the first three months of the year despite faltering in March, the government said Thursday, though outbound investment slumped.

FDI, which excludes investment in financial sectors, totalled $31.55 billion in the March quarter, the commerce ministry said in a statement. However, investment in March declined 1.47 percent to $12.24 billion, it said.

“Major Asian countries’ and regions’ investment in China generally maintained a steady growth momentum,” ministry spokesman Shen Danyang said.

Foreign investment into China rebounded in 2013 to $117.59 billion as confidence in the country’s growth potential picked up, but the forecast this year is for slowing expansion in gross domestic product (GDP).

China announced Wednesday that GDP grew 7.4 percent in the first quarter, slowing from 7.7 percent in October-December and marking the slowest expansion in 18 months.

During the first quarter, FDI from the 10-member Association of Southeast Asian Nations (ASEAN) increased 7.84 percent to $1.97 billion, the ministry said.

Investment from the United States fell 1.91 percent to $1.04 billion, while that from the European Union (EU) slumped 24.52 percent to $1.55 billion.

Separately, Chinese overseas investment, excluding financial sectors, fell 16.5 percent in the first quarter year-on-year to $19.9 billion, the ministry said, with investment to Hong Kong, ASEAN and European Union leading the decline.

Investment to seven economies — Hong Kong, ASEAN, the EU, Australia, the US, Russia and Japan — amounted to $12.63 billion, or 63.5 percent of the quarterly total, the ministry said.

Chinese investment to the EU declined seven percent, it said.

“Two-way investment between China and the EU declined in the first quarter due to factors such as specific projects, industries and areas,” Shen said. “But we think the fall will be temporary rather than a trend.”

Investment to the United States, however, jumped 105.2 percent to $1.07 billion.

China’s total outstanding overseas investment in non-financial sectors as of the end of March stood at $545.6 billion, the ministry said.

Investment overseas rose last year, hitting $90.17 billion, and officials said it could overtake FDI this year.

 

 

 

 

 

 

Source : Channel News Asia | April 17, 2014

Advertisements

About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s