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January Saw 32.6% Drop in Foreign Investment
Summary:

Actual foreign direct investment (FDI) in China registered a year-on-year drop of 32.6% in January, down to 7.54 billion US dollars, the Ministry of Commerce said on Monday morning.

The indicator has been in decline for four consecutive months. Last December, China saw a decline of 5.73% in actual FDI to 5.98 billion US dollars.

At a press conference, Yao Jian, the ministry's spokesperson, ascribed the decline to the international financial crisis, supernormal growth in actual FDI inflows last year and the disruption caused by the Spring Festival holiday.

In 2008, the actual FDI in China reached 108.3 billion US dollars, or an increase of 29.7% over the previous year. The figure was a record high since China began allowing direct foreign investment in the 1990s.

The number of foreign-funded enterprises approved by the Ministry also dropped 48.7 percent to 1,496, Yao added in the conference.

Year-on-year growth in actual use of FDI in China has declined since last October.

While foreign investment plunged, the national coffer too recorded lower inflow. China's treasury revenue in January fell 17.1% or 126.5 billion yuan from a year earlier to 613.1 billion yuan, the Ministry of Finance announced on Monday.

The Ministry attributed the decline to a business performance slump under the slowing economy and the implementation of tax-cut policies, including lower stamp tax for securities transactions and higher tax rebate for exports.

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