|China foreign capital inflows surpass US$88b
Foreign investment in China gained 6.2 percent on year in the first nine months of 2013, the government said. But it warned the world's number two economy still faced domestic and external headwinds.
And while the commerce ministry said Chinese investment overseas had increased sharply over the first nine months of the year, the amount of cash going to Japan had almost halved as a diplomatic dispute with Tokyo drags on.
Beijing said Foreign Direct Investment, which excludes financial sectors, reached US$88.6 billion for January-September, AFP reports.
For September alone FDI climbed 4.9 percent to US$8.84 billion, well up from the 0.62 percent rise seen in August. But the figure is sharply down from 24.13 percent seen in July and 20.12 percent in June.
Ministry spokesman Shen Danyang said full-year FDI was expected to be “stable,’’ but noted that uncertainties remained.
“Given the complex and changing global economic situation, the sustained and stable growth of the Chinese economy is facing pressure and challenges such as insufficient foreign demand and rising labor costs,'' Shen told a news conference in Beijing.
“These will affect to some extent China's foreign investment environment,'' he said.
The amount of capital from the European Union was up 23 percent year-on-year to US$5.94 billion during the January-September period, while from the United States it increased 21.3 percent to US$2.88 billion.
The vast majority, however, comes from a group of 10 Asian countries and regions including Hong Kong, Taiwan, Japan, Thailand and Singapore. FDI from the region jumped 7.5 percent to US$76.3 billion in January-September.
“Investment from the 10 Asian countries and regions, the EU and the US maintained rather fast growth,'' the commerce ministry said.
Separately, China’s investment abroad rose 17.4 percent year-on-year to US$61.64 billion during the nine months, the ministry said.
However, the amount of cash going to Japan slumped 45.5 percent. The plunge comes as the two countries are embroiled in a sovereignty dispute over islands they both claim in the East China Sea – known as Diaoyu in China and Senkaku in Japan.
The long-simmering tensions boiled over in September last year, when Tokyo nationalized the islands, sparking a bitter diplomatic stand-off.
Japanese investment in China during the first nine months was up by 5.62 percent to US$5.94 billion.