A billboard advertising local projects for foreign investors stands high at an industrial exhibition in Shanghai. China remains an attractive destination for foreign direct investment despite the global economic recession. [Photo / China Daily].
By Zhou Siyu, China Daily, 2011-08-23 —
Services and high-tech sectors will see biggest inflows of capital from abroad, experts predict
BEIJING – China will remain the most attractive investment destination over the next two years, as world foreign direct investment (FDI) gradually recovers from the global financial downturn, said the United Nations Conference on Trade and Development (UNCTAD) and economists.
As the government continues to push for the country’s industrial upgrading and relocation, China’s FDI inflows, particularly to sectors such as services and high-technology, will remain bulky in the coming years, they said.
"China boasts a bright future in attracting more FDI flows," said James X. Zhan, director of the investment and enterprise division of UNCTAD.
FDI jumped 18.6 percent year-on-year in the first seven months to $69.2 billion, said the Ministry of Commerce on Tuesday. Foreign investors set up about 15,600 new projects during the first seven months, up nearly 8 percent from the same period of last year.
The global FDI volume increased by 5 percent year-on-year to $1.24 trillion by the end of 2010, according to the The World Investment Report 2011, released by UNCTAD last month.
The figure is still 15 percent lower than the average volume of $1.472 trillion before the financial crisis and 37 percent lower than the peak volume of $1.971 trillion reached in 2007, the report said.
Some developing countries with promising economic growth were the major FDI recipients, and nearly half of the investment flowed to new manufacturing projects, according to the report. . . .