International Law

FDI in China more than doubles in January

By Andy Scott

Feb. 20 - China used US$11.2 billion in foreign direct investment in January, a growth of 109.78 percent over the same period of last year, the Ministry of Commerce said Tuesday.

This is a result of strong investor confidence in China?s economic growth. In the coming months, FDI in China is expected to remain large but the growth rate should slow down a bit. Investment in China is expected to remain strong through the first half of the year, however, as the Olympics approach, many expect a slow down as investors begin to collectively hold their breath.

Sources with the Ministry of Commerce told Xinhua that China’s FDI absorption had entered a new stage, in which quality, instead of quantity, had begun to play a major role. Mergers and acquisitions perform in tandem with the establishment of new operations as the main pattern of FDI. While FDI kept growing, the number of newly established foreign-funded enterprises tended to go down. (more…)

Full post as published by China Briefing Blog on February 19, 2008 (boomark / email).