FDI surges despite slowdown
Updated: 2013-07-18 05:44
By Li Jiabao (China Daily)
Global investors confident for longer term, says trade official
China's foreign direct investment increased the most in more than two years in June despite the economic slowdown, suggesting that global investors are confident about the prospects of the world's second-largest economy amid the new leadership's reforms.
FDI inflow in China's non-financial sectors reached $14.39 billion in June, up 20.12 percent year-on-year, the largest expansion since March 2011 and also the fifth consecutive monthly increase since February, according to the Ministry of Commerce.
In the first half, FDI totaled $62 billion, up 4.9 percent year-on-year.
"The FDI increase this year remarkably proves the competitiveness of the Chinese economy and the global investors' recognition of the investment environment in China," Shen Danyang, spokesman for the ministry, said at a news conference on Wednesday. "We believe that FDI inflow will still be relatively steady in the second half of this year."
He added that FDI inflow showed a gradual pickup in the first half, but that a single month's figures are not enough to signal a recovery in foreign investment.
"The FDI improvement showed that transnational investors are optimistic about the medium- and long-term prospects of the Chinese economy as the new leadership further advances market-oriented reforms and opening-up policies to move the economy up the value chain," said Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a think tank of the ministry.
Huo added that global investors are hopeful about business opportunities in China due to signals such as the recent approval of a free trade zone in Shanghai, the restarted investment talks with the United States and loosened limits in the financial sector.
Wang Jun, an expert with the China Center for International Economic Exchanges, added that China's strong FDI growth was also in line with the global economic recovery, which boosted the willingness to invest.
"In light of the FDI increase amid the economic slowdown in the first half of this year, the second half will see the Chinese economy show a greater attraction to global investors as the growth pace will moderately rebound in the third and fourth quarters," Wang said.