China's realized foreign direct investment (FDI) in 2006 is
expected to be almost as high as that in 2005, which was US$60
billion, according to Lu Jianhua, director of Foreign Trade
Department of the Ministry of Commerce (MOFCOM).
Hu Jingyan, director of Foreign Investment Administration with
MOFCOM, was quoted by Shanghai Securities News as saying the
current volume of China's FDI is as yet insufficient. He added that
MOFCOM would take measures to encourage more foreign investment in
China.
FDI to China dipped 0.5 percent year-on-year to US$60.33 billion
last year, excluding investment in banking, insurance and the
securities sectors, according to the latest statistics from
MOFCOM.
This is the first time that FDI has fallen in China since
1999.
The ministry said the Chinese government had approved 44,001 new
foreign-invested ventures in 2005, up 0.77 percent
year-on-year.
Chong Quan, another commerce ministry spokesperson, said foreign
investment to China kept up a good pace in 2005 with improvements
in quality and efficiency.
Chong said that 2005 saw a rapid increase of European Union
investment to China, but a moderate decrease of actual investment
from the United States and 10 Asian countries. Hong Kong remains a
major foreign investment source.
He said the structure of investment in China was enhanced in
2005.
"Foreign investors are showing strong enthusiasm for investment
in high-tech fields and research and development centers," he said,
adding that FDI in telecommunications equipment, computer and other
electronics manufacturing, and transportation equipment
manufacturing also increased.
(China Daily January 17, 2006)