CHINA'S FDI SURGES 32 PCT IN NOVEMBER

By Vincent Low Seng Guan

BEIJING, Dec 17 (Bernama) -- China's foreign direct investment (FDI) surged
32 per cent to US$7.02 billion in November year-on-year -- the highest in 16
months, the Commerce Ministry said.

"We predict the flow of FDI in the next few months will be steady and kept
within the range of US$7 billion to US$8 billion," spokesman Yao Jian told a
press conference.

Inflows into coastal provinces like Jiangsu, Guangdong and Liaoning
contributed much of the growth. Chongqing city in Western China also saw a
significant growth.

Foreign investment from Europe and United States (US) had declined 38 per
cent whereas investment from Asian countries like Japan, Singapore and Asean saw
a 60 per cent growth, Yao said.

Investment in the manufacturing industry grew further with a 53 per cent
share of total FDI while the service sector took 41 per cent.

Yao said that according to the US Chamber of Commerce's statistics, 90 per
cent of investors interviewed were optimistic about investment prospects in
China and 65 per cent of the enterprises planned to increase their investment in
China in 2010.

"About 60 per cent of the interviewed US investors had their products sold
in China and saw a 20 percent growth in sales. Investors put China as their
first choice because of our huge market," he said.

This year, China sent out more than ten trade and investment missions
overseas to seek trade cooperation and attract investments.

During the three-day Central Economic Work Conference that ended on Dec 7,
President Hu Jintao said that China would take efforts to expand domestic
spending in the coming year as a way to support stable economic growth.

Economists have predicted that more global companies will flock into sectors
related to domestic consumption, such as the service industry, pharmaceuticals,
environmental protection and retailing, to tap business opportunities.
-- BERNAMA


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