China's foreign direct investment (FDI) fell for the eighth consecutive month in May, according to China’s Ministry of Commerce (MOFCOM). However, the country is still confident that it will remain the best destination for global FDI.
From Jan. to May 2009, China utilized 34.05 billion USD of foreign direct investment (FDI), down by 20.4 percent year-on-year. During the same time, 7,890 foreign-funded enterprises were approved, down by 33.8 percent year-on-year.
In May, utilized FDI totaled 6.38 billion USD, down by 17.8 percent compared with the same month in 2008. And 1,649 foreign-funded enterprises were approved in May, down by 32%.
That is the first continuous all-round drop in statistics for newly approved foreign-funded enterprises, contracted foreign capital and utilized foreign capital since the Asian Financial Crisis in 1998, said Yao Jian, spokesman for the Ministry of Commerce.
The decrease of actual FDI use in May was lower than April's 22.5 percent, but much higher than March’s 9.5 percent.
In the first five months, the decrease rate of FDI in Western and Central China was even higher than the national average. FDI in Central China fell 35.7 percent year-on-year, while FDI in Western China plunged 30.2 percent.
The Ministry of Commerce is working with relevant departments to establish policies to stabilize and expand China's FDI. Efforts will be focused on encouraging foreign investment which can promote China's industrial structural adjustment, employment, balanced regional development and environmental protection, said Yao.
The Ministry of Commerce will further decentralize the power of approving FDI projects to local authorities. In March this year, the Ministry devolved the power of approving FDI projects below 100 million USD to provincial commerce offices.
Yao quoted a recent report by the Economist Intelligence Unit, saying China ranks first in market opportunity from the year 2009 to 2013 and has made great progress on business environment.
China has been the largest destination among developing countries for global foreign direct investment for 17 years in a row.
China will continue its opening-up process. With the development of China's economy and implementation of more supporting policies, it's reasonable to believe that China will still be one of the best choices of global FDI, Yao concluded.
By People's Daily Online
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