A total of 44,001 new foreign-funded businesses were established in China in 2005, up 0.77 percent. The actual use of foreign investment stood at 60.3 billion USD, down by half a percent year-on-year (foreign capital used by the banking, insurance and securities sectors excluded).

Chong Quan, spokesman of the Ministry of Commerce, said foreign investors' interest maintained in setting up hi-tech and R&D centers and increased in areas of communication, computer and other electronics manufacturing, as well as transportation equipment production. He took it as an implication for better quality of foreign capital influx in 2005.

Hong Kong is still the largest source of foreign capital, contributing 29.75 percent of the total the Chinese mainland used in the year. The EU's investment in China grew fast. The 15 old EU members established 17.46 percent more businesses and inputted 22.52 percent more capital into the Chinese mainland market.

In the mean time, the US investment in China decreased. Companies funded by US investors declined by 4.69 percent and the actual capital inflow decreased by 22.32 percent.

Chong also declared that east China remained to be the main destination of foreign investment. New companies funded by foreign investment and the actual use of foreign fund went up by 1.21 percent and 2.59 percent. But the increase in the actual use of foreign capital in this area was dwarfed by the 27.75 percent surge in the country's central and 11. 3 percent increase in the west regions.

By People's Daily Online