Realized?foreign direct investment (FDI) in China rose in
October after annualized declines in the previous four months, the
Ministry of Commerce said yesterday.
The amount?grew nearly 16 percent to US$5.99 billion and
3,047 foreign-invested enterprises were approved.
The country attracted US$48.58 billion in FDI from January to
October, which is up 0.34 percent from a year earlier, ministry
spokesman Chong Quan told a news briefing.
During the same period, 33,068 foreign-invested ventures were
approved. This is down 6.32 percent year on year. The ministry did
not reveal figures for contracted FDI. Hong Kong ranked first among
sources of FDI, followed by the British Virgin Islands and
Japan.
Although the increase was slight compared with last year, the
average value of each investment deal rose, said Gao Hong, a
research fellow with the Chinese Academy of Social Sciences. He
attributed that to the government paying more attention to the
quality of overseas investment rather than the quantity.
The figures released by the ministry didn't include investment
flows to the financial sector, which has become a major destination
of FDI since last year.
"A lot of foreign money is coming into China's banking sector as
the deadline at the year-end for the full opening of the banking
sector draws near," Citigroup economist Huang Yiping said.
The National Development and Reform Commission, China's top
economic planner, said last week the country welcomed foreign
companies as strategic investors in commercial banks and
state-owned insurers as long as the Chinese?side retained a
controlling stake.
The move is expected to attract more inflows to the financial
services sector during the 11th Five-Year Plan (2006-10). The banking
regulator is expected to publish revised administrative rules on
foreign banks allowing them to deal with renminbi retail business.
FDI in the sector jumped to US$12 billion last year compared with
less than US$2 billion in 2004.
Chong Quan also touched on China's trade and economic relations
with Vietnam, India and Pakistan with President Hu Jintao yesterday beginning a visit to the
three countries.
Chong said he believed Chinese products and services would have
easier access to Vietnam as the country had recently concluded
negotiations for accession?to the World Trade Organization.
Bilateral trade between China and Vietnam reached US$8.2 billion in
2005 and Vietnam is one of the major overseas investment
destinations of Chinese enterprises.
Trade between China and India is expected to reach US$20 billion
this year. This is two years ahead of the target set by the two
governments.
China is also likely to reach a free trade agreement with
Pakistan in the near future, Chong said.
(China Daily November 16, 2006)