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Foreign direct investment rises 4.8% on high-tech, manufacturing

By ZHONG NAN (China Daily) Updated: 2016-05-11 08:44

Foreign direct investment into China rose 4.8 percent year-on-year to 286.78 billion yuan ($45.3 billion) between January and April, led by a robust inflow to the high-tech service and manufacturing sectors, particularly in western regions.

FDI attracted by the service sector rose 7.9 percent on an annual basis to 201.4 billion yuan during the four-month period, the Ministry of Commerce said on Tuesday, accounting for 70.2 percent of the total.

While the high-tech service sector gained 32.53 billion yuan-worth of outside investment, an even-more impressive 108.6 percent surge.

Fast-growth businesses from the high-tech service sector, such as information technology, development of digitalization products, scientific research and development, jumped 195 percent, 199 percent and 41 percent respectively from same period a year earlier.

Tang Wenhong, director-general of the ministry's department of foreign investment administration, said overseas companies can certainly benefit from introducing their recognized brands, products, know-how and technology into China's increasingly encouraged services market.

He also highlighted B2B commercial sectors such as facilities management, outsourcing of business processes, financial or B2C businesses including hospital and healthcare, as priority target investment areas.

"FDI in western regions posted strong growth between January and April, outpacing the national total with a 36.2 percent jump year-on-year to reach 23.4 billion yuan," Tang said.

"The great potential in the service industry and a relatively low base of comparison contributed to that surge."

China remains one of the world's most popular investment destinations, along with the United States and the European Union, after FDI into the country rose from $108.82 billion in 2010 to $126.27 billion last year.

A total of 8,298 new enterprises were established by foreign companies in the first four month of this year, a 6.5 percent annual rise.

Eager to attract more foreign investment to put the country's economic growth on a more secure footing, Tang said the ministry plans a series of key measures to further ensure stable FDI inflows this year.

These include further relaxation of the requirements for foreign investment in service sectors such as education, finance and culture, and optimizing the administrative system to enhance work efficiency.

More foreign companies will be encouraged to invest in central and western regions, he said, and support will be given to the development of cross-border economic cooperation zones.

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