The Ministry of Commerce in China released the latest foreign direct investment (FDI) data on October 19th. The amount of newly approved foreign-invested enterprises set up in September is 2248, declined about 6.4% than August. The actually used foreign capital amount reach 8430000000 dollar, have dropped about 6.8% than last year.
From January to September in 2012, there are 18025 foreign-funded enterprises newly set up in China which have dropped about 11.7% compared to last year and the used foreign capital amount reaches 83420000000 dollar, which has dropped 3.8% compared to last year.
FDI continually downward trend of China reflects the disadvantages of both the external and internal economic situation in China. To a certain extent, FDI can be used as an export leading indicator. Its decline of FDI means that China's exports are still facing a pressure. On the other hand, the continually decline of FDI also shows that the weak domestic economic situation that has reduced the attraction to external capital. Especially, the decline in growth rate in manufacturing industry is greater than the general FDI falling average, so as the real estate. Although the macro economic data of the latest three quarters showed that the economy in China seems to be stably grown, the supporting incentives are insufficient.
From January to September in 2012, there are 18025 foreign-funded enterprises newly set up in China which have dropped about 11.7% compared to last year and the used foreign capital amount reaches 83420000000 dollar, which has dropped 3.8% compared to last year.
FDI continually downward trend of China reflects the disadvantages of both the external and internal economic situation in China. To a certain extent, FDI can be used as an export leading indicator. Its decline of FDI means that China's exports are still facing a pressure. On the other hand, the continually decline of FDI also shows that the weak domestic economic situation that has reduced the attraction to external capital. Especially, the decline in growth rate in manufacturing industry is greater than the general FDI falling average, so as the real estate. Although the macro economic data of the latest three quarters showed that the economy in China seems to be stably grown, the supporting incentives are insufficient.
However, the slowdown of absorption of foreign capital in China is under expectation because of the overall slowdown in global transnational investment, which is especially influenced by the European debt crisis.
In recent years, China attracts foreign capital comparative advantage of absorbing foreign capital is transforming from a cost advantage to a comprehensive advantage. China's vast market with complete industrial chains still has a formidable attraction to foreign investors.
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