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China: A Large Receiver of Investments After US

The Organization for Economic Cooperation and Development (OECD) said on Monday that China has become the second largest receiver of direct foreign investment after the United States, by receiving US$306 billion of investments from 1979 to 1999.

In a report on financial markets, OECD said that the investments China received make up 10 percent of the total direct foreign investments in the world during that period of time, and 30 percent in the newly industrializing countries.

The report said that although the rate of economic growth has slowed down since 1996, China still has an annual growth rate of around 7 percent and is expected to keep the rate at from 6 to 7 percent in the coming 10 years.

Since 1992, it added, direct foreign investments have played the role as the dominant source of the capitals in China, making up 70 percent of the total flux of the capitals in the country.

Apart from the investment from Hong Kong, the investors from the United States, Japan and Western Europe are the biggest sources of direct foreign investments in China and they have mainly invested through creation of enterprises and setting up joint ventures until last year.

In 1999, more than 60 percent of foreign investments were made through mergers and acquisitions in China, the report said.

(Xinhua 10/10/2000)



In This Series

Policy Continued to Absorb Foreign Direct Investment

China: No. 1 Foreign Fund Recipient Among Developing Countries

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