China's Foreign Direct Investment Falls for Fifth Month in February

2009-03-17 13:19:45 Bridging the Straits

China's Ministry of Commerce says China's foreign direct investment or FDI fell for the fifth consecutive month in February to 5.8 billion U.S. dollars, down 16 percent year on year.

The ministry approved the establishment of over 1,200 foreign-funded enterprises last month, down 13 percent from a year earlier.

However, ministry spokesperson Yao Jian said the declines in February were much slower than January's drops.

He added that China still remains an attractive destination for FDI.

"Stable economy, huge domestic market, low-cost labor and open market are four positive elements for a country to attract foreign funds. Taken these elements together, China is still one of the most attractive countries for foreign direct investment."

Global FDI inflows declined 21 percent last year to 1.4 trillion U.S. dollars because of the negative impacts of the global financial crisis and its economic aftermath, which was likely to further contract in 2009.

To counter the decline, China's Ministry of Commerce has said that it will give its provincial branches more say on approving overseas projects invested by domestic enterprises.

China to Send More Delegations Overseas for Trade, Investment, Technological Cooperation

Meanwhile, China has vowed to send more delegations overseas this year for exchanges and cooperation on trade, investment and technological innovation.

Spokesperson for the Ministry of Commerce Yao Jian said that amid the financial turmoil, economic and trade exchanges are among the most effective measures to boost the global economy.

"The missions of the trade and investment delegations would vary according to the countries they visit. These missions will also differ from the previous ones, which focused more on exports and purchasing. In addition, we will further promote technological cooperation and introduce energy-saving and environmentally-friendly technologies to China."

A Chinese business delegation led by Commerce Minister Chen Deming purchased billions of dollars worth of products and technology from Germany, Switzerland, Spain and Britain during its tour in late February.

The trip was an important follow-up action to Premier Wen Jiabao's visit earlier this year, giving new confidence and momentum to Europe.

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