The latest figures on foreign direct investment on the Chinese mainland show that foreign capital in China is moving northward from its traditional investment base in the south.

Once the darling of foreign investors, the Pearl River Delta is now facing increasing pressure from competitors, according to China Radio International.

FDI in Guangdong recorded a 10 percent decline during the first seven months of 2004 in comparison to the previous year, with the drop for Shenzhen alone at 18 percent.

Hainan and Fujian suffered even greater FDI drops at 60 percent and 40 percent, respectively.

In contrast, the FDI figure for southwestern Yunnan province soared nearly 600 percent from a year earlier, while in the western Shanxi province, FDI surged by 200 percent.

The Southwestern Guangxi Zhuang Autonomous Region, and the northern coastal provinces of Shandong and Liaoning account for the other top five FDI climbers.

These regions' competitive edge over the Pearl River Delta can be found in their solid industrial infrastructure and abundant energy resources.

Foreign companies are not only branching out geographically, but are also employing more aggressive measures to spread their investment, by adopting the method of mergers and acquisitions, as well as pursuing research and development.

(Xinhua News Agency September 3, 2004)