Foreign direct investment in China picked up in May as companies seek to take advantage of low wages and rising demand in Asia's second-biggest economy.

Investment from abroad increased 11 percent from a year earlier to US$26 billion in the five months through May, after rising 10 percent in the first four months of this year.

Contractual investment also jumped 50 percent, to US$57 billion.

General Motors, Volkswagen, Ford and Toyota have announced plans in the past nine months to invest about $10 billion in China, the world's fastest-growing auto market.

ProMOS Technologies Inc., Taiwan's second-largest memory- chipmaker, last month announced plans to build a $900 million chip plant on the Chinese mainland, the world's second-largest market for personal computers.

The promise of growth in China is also attracting companies like Home Depot, the world's largest home-improvement retailer, and Tesco Plc, Britain's biggest grocery chain.

The Chinese Ministry of Commerce said as of end-May, China had attracted foreign investment totaling $527 billion and contracted foreign investment of $1 trillion.

(CRI June 14, 2004)