China's FDI grows fastest in 4 years

China.org.cn, February 17, 2015

China's foreign direct investment saw fastest growth in nearly four years last month despite the country's economic slowdown at the start of this year.

Foreign investors channeled US$13.9 billion into the country in January, up 29.4 percent from a year earlier, according to the Ministry of Commerce. It was the strongest showing since April 2011.

China remained an attractive place for foreign investors due to its massive market potential, good infrastructure and an improving business environment, said Shen Danyang, a commerce ministry spokesman.

China has surpassed the United States and become the world's top destination for foreign investment after the country absorbed US$119.6 billion in non-financial foreign investment last year.

Significant growth was gained at the end of 2014 after China pushed forward its strategy of reviving the ancient Silk Road and constructing a maritime equivalent at the Asia-Pacific Economic Cooperation meeting.

Foreign investment in services led the growth in January by surging 45.1 percent year on year to US$9.1 billion, or 66 percent of the total. Investment in manufacturing rose 13.9 percent to US$3.9 billion, 28.4 percent of the total.

"It is hard to say whether China can retain the top position this year, but we expect the investment growth to stay stable as the country's fundamentals will remain the same," Shen noted.