China FDI inflow down 9.2 pct on yr in January to RMB80.1 bln

BEIJING, Feb. 22 (Xinhua) -- Foreign direct investment (FDI) into the Chinese mainland dropped 9.2 percent year on year in January 2017 to 80.1 billion yuan (12 billion U.S. dollars), data from the Ministry of Commerce showed on February 16.

In January, there were 2,010 newly established foreign-invested enterprises in China, up 0.1 percent year on year.

In terms of industrial structure, the change in FDI structure with growing FDI in high-tech manufacturing and service industries was in line with China’s industrial transformation and upgrading trend.

The following table shows actual use of FDI in major industries

In terms of investment sources, major countries and regions in the world generally maintained stable investment in China. In January, FDI from the top ten countries and regions amounted to 75.4 billion yuan, up 12.5 percent on year and accounting for 94.2 percent of total FDI in China. FDI from Hong Kong, Japan, and EU respectively increased 21.1 percent, 24.2 percent, and 27.8 percent year on year.

The decline in FDI inflow in January was mainly attributed to the high base number of FDI created in the same period last year and the factor of Chinese Lunar New Year holiday.

MOC believes that the fluctuation of FDI in January would not represent the trend of FDI in China for the whole year.

In mid- and long-term, China has prominent advantages and conditions in attracting foreign investment. China is expected to maintain an average annual economic growth of more than 6.5 percent during 2016-2020, remaining a economy with fastest growth in the world.

Meanwhile, China would maintain its competitiveness in attracting foreign investment with proceeding reforms, expanding opening-up areas, improving market system, prioritizing business environment, and formation of new economic drive, according to MOC. Enditem (Edited by Li Xiaohui, lixh@xinhua.org)