China received US $13.374 billion of foreign direct investment (FDI) in the first two months of 2009, a y-o-y decline of 26.23 percent with newly approved foreign-invested enterprises totaling to 2,761, down 36.85 percent from the same period of last year.
In the month of February alone, 1,265 foreign-invested enterprises were given approval, year-on-year drop of 13 percent with total amount reaching $5.833 billion in February, a fall of 15.81 percent, when compared to February 2008.
Currently international direct investment is slowing down and according to United Nations statistics, global transnational direct investment dropped by 21 percent in 2008 and is expected to decline by about 30 percent in 2009.
The declining trend will off course impact foreign capital inflows. China continues to be the most attractive host country for investment due to stable economic growth, huge domestic market, low-cost labor and others as per a UNCTAD survey of 2008.
A recent survey by US-China National Trade Commission shows that 88 percent of foreign invested companies make profits, profits of 81 percent are higher than or equal to global profit margins and 85 percent regard China as the preferred place for overseas business.
Since the out-break of the international financial crisis, Chinese government has introduced a series of policies and measures, which will further boost the confidence of foreign investors, due to which FDI inflows are expected to be normal.
Fibre2fashion News Desk - China
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