Beijing: Foreign direct investment (FDI) into China climbed nearly 16% in the first 10 months of 2011 from a year earlier as foreign investors continued to flock to the world’s fastest-growing major economy despite the global economic malaise.
China drew $95 billion in FDI in the first 10 months of this year, up 15.9% from the same period in 2010, the commerce ministry said on Wednesday, putting it on track for another record year of FDI inflows.
Growth slowed slightly from a 17% rise in the fist nine months, dragged by sluggish inflows from the United States and Europe, the ministry said.
In October alone, China attracted $8.3 billion in FDI, up 8.75% from a year ago, the ministry said.
Investment inflows, which surged in the years after China joined the World Trade Organisation in 2001, have recovered strongly after being hit hard by the global economic slowdown.
FDI from 10 major Asian countries and regions soared 20.7% in January-October from the same period a year earlier, with inflows from Japan jumping 65.5%, it said.
FDI from the United States dipped 18.1% in the first 10 months year-on-year while inflows from the European Union inched up 1.1 percent, underscoring their economic woes.
Firms invested $44.5 billion in the services sector, up 20.7% from a year earlier. The manufacturing sector drew $43.6 billion in funds, but the annual growth rate was a more moderate 11.7%.
Meanwhile, China’s outbound investment rose 14.1% in the first 10 months from a year earlier to $46.3 billion, including $15.6 billion via mergers and acquisitions in overseas markets, the ministry said.
China has been encouraging its companies to invest overseas to shore up their competitiveness and help relieve the upward pressure on the yuan from hefty capital inflows.