China's acquisition of foreign direct investment (FDI) dropped
for the fourth consecutive month, but the country remains an
attraction to foreign investors and prospects are still bright,
official statistics indicate.
According to the Ministry of Commerce, from
January to September, 29,539 foreign-invested enterprises were
approved to be established, a rise of 18.59 percent over the same
period last year.
Contractual FDI stood at US$79.21 billion, 36 percent higher
over the first nine months from last year, while overall foreign
investment was US$40.24 billion, growing 11.85 percent.
The acquisition of foreign funds in the past month was only
US$3.56 billion, down 30 percent year-on-year, making it the fourth
straight declining month.
Jin Bosheng, director of the foreign investment research
department of the Chinese Academy of International Trade and
Economic Cooperation, attributed the drops to the aftermath of the
deadly severe acute respiratory syndrome (SARS) outbreak earlier
this year.
"We should not make a fuss over the drops, and I believe the
momentum of the inflow of foreign capital is still strong,'' Jin
said.
He said that although investment was suppressed due to SARS
worries, contractual FDI maintained a dynamic growth and the number
of actual foreign investors will surely have a big jump in this
quarter.
According to the Ministry of Commerce, contractual FDI rose by
more than 90 percent to US$11.68 billion in September year on
year.
"Considering the latency of the contractual investment, interest
is bound to boom within the next half year,'' Jin said.
He explained that apart from the traditional attractions of an
opening market, strong economic growth and the grasp of the
international manufacturing industry shift, China has another
advantage; its stable political and secure investment environment,
whereas many other countries are troubled by fears of terrorism and
other matters.
"I am very confident that the FDI growth in China can remain
steady for the next five to 10 years,'' Jin said.
He predicted overseas investment in China will still grow by
about 15 percent over last year and reach US$60 billion, although
it was only US$40.24 billion over the first nine months of
2003.
China has attracted a total of US$907.27 billion in contractual
FDI since 1979.
(China Daily October 16, 2003)