Foreign inflows into China pick up speed

PHOTO: Foreign inflows into China pick up speed

BEIJING - Foreign investment in China rose 6.2 per cent year-on-year in the first nine months of the year, the government said yesterday.

Beijing said foreign direct investment (FDI), which excludes financial sectors, reached US$88.6 billion (S$110 billion) from January till last month.

For last month alone, FDI climbed 4.9 per cent to US$8.84 billion, well up from the 0.62 per cent rise seen in August.

But the figure reflects a sharp slowdown from the 24.13 per cent seen in July and 20.12 per cent in June.

The vast majority of money comes from a group of 10 Asian countries and regions, including Japan, Thailand, Singapore, Hong Kong and Taiwan. FDI from the group jumped 7.5 per cent to US$76.3 billion from January till last month.

The amount of money coming from the European Union rose 23 per cent year-on-year to US$5.94 billion, while that from the United States increased 21.3 per cent to US$2.88 billion.

"Investment from the 10 Asian countries and regions, the EU and the US maintained rather fast growth," the commerce ministry said in the statement.

Separately, investment from China rose 17.4 per cent year-on-year to US$61.64 billion during the nine months, the ministry said.

However, the amount of cash going to Japan slumped 45.5 per cent. The plunge comes as the two countries are embroiled in a sovereignty dispute over islands they both claim in the East China Sea, known as Diaoyu in China and Senkaku in Japan.

Despite the row, Japanese investment in China during the first nine months rose 5.62 per cent to US$5.94 billion.