Q1 foreign direct investment in China up 5.5%

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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

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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