Beijing (China Daily/ANN) - China's
foreign direct investment (FDI) fell almost 10 percent last month from a year
earlier, the first drop in 28 months, as Chinese Vice-Premier Li Keqiang called
for a boost to domestic consumption on Thursday.
Amid the "grim and
complicated" global outlook, China needs to strengthen market capacity and
growth by encouraging private investment, increasing investment in affordable
housing projects and accelerating urbanization, Li said.
The vice-premier also called
for greater promotion of the service industry, which he said is the largest
"employment creator and innovation driver".
Experts said a growing and
stable Chinese market will help lure foreign investment, and they predicted
that the world's second-largest recipient of foreign investment will recover
lost ground in the long run.
According to the Ministry of
Commerce, FDI fell 9.76 percent from a year earlier to $8.76 billion in
November.
China last witnessed a monthly
drop in FDI in August 2009 amid the world's worst financial meltdown in seven
decades.
"The only thing that
explains the drop in November is that the debt crisis in the European Union and
the US economy have both taken a toll in the confidence of foreign
investors," said Zhu Baoliang, chief economist at the State Information
Center, a government think tank.
From January to November, US
investment in China dropped by 23 percent year-on-year to $2.74 billion, and
investment from the EU rose marginally by 0.29 percent to $5.98 billion.
Shen Danyang, ministry
spokesman, said the monthly figure may not reflect the long-term trend, which
he described as positive.
"The drop in any
individual month is not representative and does not define the general trend of
Chinese FDI growth amid sluggish global investment," Shen said.
A number of factors, including
stable economic growth and domestic consumption potential, show China's
long-term advantages and appeal to foreign enterprises, he said.
He also said investment from
developed countries will grow over the long term.
Opening wider
Shen said China's commitment to
opening its market wider will help attract more investment, with high-tech and
green industries offering golden opportunities for foreign firms.
"China will encourage
foreign enterprises in the next five years to invest in modern agriculture and
services as well as high-end and the energy-saving and environmental protection
sectors," Shen said.
President Hu Jintao reaffirmed
China's policy to open up as he said the policy had benefited both China and
the world.
Under the agreements China
recently signed with eight nations, including Germany, France, Switzerland, the
Netherlands and the United Kingdom, enterprises from these countries,
especially those in green industries, will increase investment in China.
During the three-day annual
Central Economic Work Conference that concluded on Wednesday, China vowed to
maintain relatively fast growth and to boost domestic consumption.
"There are no other places
that can outperform China for investment," said Li Xiaogang, director of
the Foreign Investment Research Center at the Shanghai Academy of Social
Sciences.
"At the moment, investors
may be reluctant due to the global outlook."
Ding Qingfen in Beijing/China
Daily | ANN
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