F REIGN TRADE - 中国国际贸易促进委员会

FDI Dropsfor Six MonthsBy Yang WeiChart: China’s FDI growth from March 2011 to April 201240%30%32.90%20%18.57%10%0%Mar, 2011 Apr May Jun Jul Aug Sep Oct Nov Dec Jan, 2012 Feb Mar Apr-10%-20%-12.73%-6.10%Data Source: Ministry of Commerce, PRCThe FDI statistics issued by the Ministry ofCommerce on May 15 show that in Aprilthe paid-in foreign investment in Chinaaccounted for 8.401 billion USD, down by0.74% year-on-year. So far the FDI index has suffereda negative growth for 6 consecutive months.Experts say that the gloomy economies of the Europeancountries and the U.S., increasing costs andslower economic growth of China, and also competitionsfrom other developing counties will exertcontinuing pressures on China’s FDI condition. Itwill be a long trend that the inflow of investment willslow down.According to Ministry of Commerce, 7016foreign-invested companies have been founded fromJanuary to April, down by 13.94% on a year-on-yearbasis; the paid-in foreign investment reaches 37.881billion USD, down by 2.38% year-on-year. As of theend of this April, 745,000 foreign-invested companieshave been approved to establish, with paid-inforeign investment totaling 1.2 trillion USD.Meanwhile, the distribution of foreign investmentin China has been undergoing subtle changes.On the one hand, manufacturers with low profitmargin and higher costs have chosen to exit theChinese market; on the other hand, more and moreforeign companies have established R&D or marketingcenters in China to grab new opportunities in theemerging industries. Special Report of this issue willexplore more on what behind the falling FDI.8