According to the statistics, the foreign capital attraction in China maintained an increasing momentum, the newly established foreign investment enterprises reached 7,790 and the actual use of foreign capital totaled 273.61 billion RMB (equals to US$44.49 billion) with an increase of 17% and 11.1% respectively in January-April. The head of the Department of Foreign Investment Administration of the Ministry of Commerce said that in recent years, the labor cost in China has risen fairly rapidly, the developed countries have encouraged the manufacturing industry to return and the neighboring countries have increased the force of foreign investment attraction and China has been facing bigger competitive pressure to attract foreign investment. Under this circumstance, the foreign investment attraction in China still maintained a steady growth in January-April.
The Head of the Department of Foreign Investment Administration pointed out that the foreign capital attraction in China presented the following characteristics in the previous four months: Firstly, the amplification of foreign capital attraction of modern service industry was fairly high. The service industry newly established 5,636 foreign-invested enterprises and the actual use of foreign capital reached US$28.14 billion, with an increase of 32.1% and 24.8% year on year respectively, accounting for 72.4% and 63.2% of the total foreign capital attraction in China. Secondly, the growth momentum of foreign capital attraction of some high-end manufacturing was favorable. The actual use of foreign capital of the manufacture of communication and other electronic equipment manufacturing industry and the transportation equipment manufacturing industry increased 9.9% and 2.4% year on year respectively. Thirdly, the investment from the major countries and regions to China remained stable on the whole. The actual total investment of foreign capital from the previous ten countries and regions reached US$42.39 billion, accounting for 95.3% of the total actual use of foreign capital in China, with an increase of 12% year on year. The actual investment from Hong Kong, Germany, England, France and Macao increased obviously. The investment from 28 countries of the EU to China reached US$2.52 billion, with an increase of 22.2% year on year. Fourthly, the termination and reduction of foreign capital involved with contracts showed a decreasing trend. In the previous four months, 2,262 foreign-invested enterprises terminated and 746 reduced the investment, with a decrease of 14.5% and 26% year on year respectively, involving US$9.99 billion and 5.2 billion of foreign investment, with a decrease of 11.9% and 16.8% year on year respectively.
The head of the Department of Foreign Investment Administration said that stabilizing the scale of foreign capital attraction and improving the quality of foreign capital attraction concern the transformation and upgrading of industry, stabilizing the employment and improving the livelihood. Faced with the new trends and new challenges of foreign capital attraction, efforts should be firmly made to implement the requirements of the conference spirits of the Third and Fourth Plenary Session of the 18th Central Committee of the Chinese Communist Party, to further expand the fields of opening up, to accelerate the reform of the management system of foreign investment, to promote the experience of the duplicable pilot reform of the free trade test areas and to strive to create a more favorable investment environment for foreign investors according to the decisions and deployment of the Central Party Committee and the State Council.
