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FDI growth up for third consecutive month

By Li Jiabao | China Daily | Updated: 2013-05-17 08:31

Foreign direct investment in China grew for a third consecutive month in April, suggesting overseas investors' approval of the country's investment environment as its new leadership deepens economic restructuring activities.

Non-financial FDI in China in April came to $8.435 billion, up 0.4 percent from a year earlier, marking three months of growth after February reversed an eight-month slump with a rise of 6.3 percent, the Ministry of Commerce said on Thursday.

The first four months of the year saw FDI increase 1.21 percent year-on-year to $38.34 billion, while total FDI into the country in 2012 declined 3.7 percent from a year earlier to $111.72 billion.

"FDI in China is quite steady this year and is gradually picking up, which somewhat proves the competitiveness of the Chinese economy and the recognition of global investors," Commerce Ministry spokesman Shen Danyang said at a news briefing.

He added that 2013 will see steady growth of FDI as China enhances its comprehensive advantages and optimizes services for global investors.

Lian Ping, chief economist at the Bank of Communications, said FDI is flowing slowly into China as the world's second-largest economy enters a moderate growth era.

China's GDP growth in the first quarter slowed to 7.7 percent year-on-year after a rebound to 7.9 percent in the fourth quarter. Foreign institutions recently lowered their expectations for China's economic growth following weak economic data in April.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation, a ministry think tank, said the sluggish world economy also restrained capital flows.

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