Fast growth of FDI due to high-tech sec­tors

Shanghai Daily - - BUSINESS - Huang Yix­uan FDI

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.

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