BEIJING: China’s foreign direct investment grew 7.8 percent from a year earlier in May, the Ministry of Commerce said here the other day.
Foreign investments totaled 57.3 billion yuan (US$9.2 billion) in China last month. The 7.8 percent growth slowed from the rise of 10.5 percent in April.
In the first five months, foreign investment expanded 10.5 percent to 330.9 billion yuan, with 9,582 new foreign-invested firms being set up in China. The investment growth was led by capital in services, which surged 23.5 percent to US$33.9 billion in the January-May period and represented 63 percent of the total. Funds for the financial sector rose nearly five times, and those for scientific research more than doubled.
Investment in manufacturing fell 5 percent to US$16.5 billion. However, foreign input in advanced manufacturing bucked the trend. Investment in telecom equipment making, transport equipment making and chemical manufacturing rose 4.8 percent, 4.4 percent and 2 percent respectively during the five-month period.
The 28-country European Union invested US$3.3 billion in China in the first five months, up 23.2 percent year on year. But the US slashed its investment by 32.6 percent to US$970 million, partly due to a high comparative base.
The 64 foreign countries involved in China’s “One Belt, One Road” initiative, which aims to increase connectivity of regions in Europe, Southeast Asia and Africa, raised their investment by 11.6 percent to US$2.9 billion in the period.
Last year, China drew US$119.6 billion in non-financial foreign investment, up 1.7 percent year on year. It helped China surpass the US to become the world’s top spot for foreign investment.
Meanwhile, China’s outbound direct investment soared 47.4 percent to 278.3 billion yuan in the first five months, with funds flowing into 3,426 overseas companies in 146 countries and regions. The pace accelerated from the 36.1 percent jump in the January-April period.
China’s investment in the EU nearly quadrupled during the period, and over US$4.8 billion in Chinese capital was invested in 48 countries under the “One Belt, One Road” initiative.
Chinese investment in Australia shrank 42 percent in the first five months. But investment may turn around after the two countries signed a landmark free trade agreement on Tuesday, which allows easier access for Chinese private investors to invest in Australia, said Shen Danyang, a ministry spokesman.
In 2014, China’s outbound direct investment reached US$116 billion.
