Fast growth of FDI due to high-tech sectors
CHINA’S foreign direct investment rose in May from a year earlier and also from January to May, with capital channeled into high technology industries.
FDI into the Chinese mainland grew 7.6 percent year on year to 58.81 billion yuan (US$9.2 billion) last month, and the number of newly set up foreign companies soared 106.5 percent annually to 5,024, data from the Ministry of Commerce showed yesterday.
In the first five months of this year, the total number of newly-founded enterprises funded by foreign investors jumped by 97.6 percent to 24,026 from the same period last year, and foreign funds that were actually used gained 1.3 percent from a year earlier to 345.59 billion yuan.
Gao Feng, spokesman for the Ministry of Commerce, attributed the rapid growth of FDI to the high-tech manufacturing sector.
The actual use of foreign investment in the manufacturing industry added 12.3 percent year on year from January to May, accounting for 29.1 percent in the total FDI amount, Gao said, adding that the proportion of the high technology industry was 20.5 percent.
“As for the FDI in high-tech manufacturing, the sector posted a hefty increase of 61.9 percent in actual use of foreign investment in the first five months from the same period last year,” Gao said.
The pharmaceutical manufacturing, electronic and telecommunication equipment making and the medical instrument making industry showed year-on-year FDI growth of 12.3 percent, 56.4 percent and 442.3 percent respectively, the data showed.
Around 37.24 billion yuan were actually invested in high-tech services during the five months, according to the ministry.
In terms of the major sources of FDI, investments from Singapore, South Korea, Japan, the US, the UK and China’s Macau all grew significantly, Gao pointed out.
“FDI from the Association of Southeast Asian Nations rose 38.9 percent, and investment from countries along the Belt and Road was up 38.8 percent in the first five months from the same period of last year,” Gao added.
Foreign investment in China’s central regions jumped 40.1 percent year on year to 24.19 billion yuan and the western regions lured 22.77 billion yuan, up 11.9 percent, according to the ministry.
China’s outbound direct investment in the five-month period rose 38.5 percent to US$47.89 billion — the robust growth in ODI for seven straight months.
In the first five months, ODI went into leasing and business services, manufacturing, mining, and wholesale and retail. Investment by Chinese enterprises along the Belt and Road countries in the five-month period rose 8.2 percent from the same period last year to US$5.93 billion, the ministry said.