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FDI in China dips in first 5 months
By Jiang Wei (China Daily)
Updated: 2005-06-13 05:49

Foreign direct investment (FDI) in China dropped slightly in the first five months of the year, but within a reasonable fluctuation.

China attracted US$22.4 billion of FDI over the period, a 0.79 per cent decrease from the previous year, according to statistics published by the Ministry of Commerce.

Contracted direct investment to China, which indicates the future trend of FDI flow, rose nearly 15 per cent over last year to US$65 billion.

The ministry said China approved 16,437 new foreign-invested ventures between January and May, down 4.75 per cent year-on-year.

Based on official information, the country realized FDI of US$4.89 billion in May, a comparatively large decrease of some 22 per cent over last year.

Although all the figures for the period show a declining or slowing growth rate, experts said the average investment in each project was increasing.

"I would like to contribute the slowdown to the large amount of FDI last year," said Lu Jinyong, an investment researcher with the University of International Business and Economics in Beijing.

In 2004, China, as one of the fastest-growing economies in the world, attracted actual FDI of more than US$60.6 billion, up 13 per cent from the previous year.

"It is really difficult for China to maintain a high growth rate after such a high starting point," he said.

(China Daily 06/13/2005 page1)



 
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