Go Finance Report - Ministry of Commerce of China, yesterday, expressed optimism able to attract foreign investment amounted to USD100 billion this year. Confidence is based on current conditions in which the Bamboo Curtain country into the global corporate investment purposes.
This occurs, despite fears the market barriers and predictable labor costs rise. According to data from the Ministry of Commerce of China, until the first 11 months in 2011, direct foreign investment (foreign direct investment / FDI) into China reached USD91, 7 billion. Figure is 18 percent higher than higher than the same period last year.
Office of the Ministry of Commerce spokesman Yao Jian claimed China, an increasing amount of foreign investment was in line with the general attractiveness of investment in China is moving very fast. Yao added that in addition to manufacturing, service industry has emerged as one of the focal point for foreign investors. Thus, this could be a major driving force of growth in investment.
"Investment is also the purpose of government to adjust economic structure," Yao said when presenting the monthly report of investment in Beijing was quoted as saying by Reuters.
According to Yao, the rapid investment growth in China also supported the concept of Beijing's increasing domestic consumption with exports supported. On the other hand, foreign investment issues also become interesting discussion Officer United States (U.S.) and China which yesterday held a high-level trade talks in Beijing.
In that occasion the two representatives of countries submit the issues ranging from intellectual property rights, investment restrictions, and market barriers. Big companies like General Electric's world express concern that the policy of "indigenous innovation" applied Beijing may inhibit the ability to compete in China.
However, Yao gives optimistic outlook for the second largest economy in the world. According to him, with the growing Chinese economy in the future, investment in the manufacturing sector will maintain a stable growth rate.
These conditions will support the investment services industry becomes more rapid. Ministry of Commerce said that investment in the services sector contributed to 44.9 percent of total foreign investment in the period from January to November 2010. This amount has increased over the previous year which only rose 40 percent.
"Computer services and real estate are two sectors that have increased investment very quickly," said Yao.
Asian Investor
In detail, the largest foreign investor in China comes from Asia. Hong Kong dominate foreign investment, and Taiwan, Singapore, and Japan in the next sequence. While the United States (U.S.) ranks only fifth in terms of investment in the land of Panda.
In November, in particular, direct foreign investment in China reached USD9, 7 billion, up 38 percent from the same month in 2009. The flow of foreign capital into China began to increase significantly since joining the World Trade Organization (World Trade Organization / WTO) in 2001.
However, China's rapid flow of foreign capital in recent months sparked fears of symptoms of overheating that could backfire if the liquidity in the country not controlled. This prompted the monetary authorities adopt a policy to put the brakes on credit by raising interest rates and dampen property market.
"The Ministry of Commerce will work together to ensure that no foreign investment flows are being redirected to the asset markets illegally. Our service is to take further action to check the authenticity of foreign capital invested in property, "said Yao.
Director of National Development and Reform Commission (NDRC) Zhang Ping said, although indicators of economic data showed a positive result, China still faced with a number of challenges.
It was among the economic slowdown in developed countries, high unemployment, and still have not recovered the global property market. "In addition, there are still many problems that caused a crisis of banking assets has not been cleaned fully. Interest rates are still fluctuating, "said Zhang.
The latest obstacle is expected to be a booster of economic growth in China is that the inflation rate reached 5.1 percent last November. Inflation is the highest in the last 28 months. This triggered rising food prices that prompted the government to increase the supply of which comes from the food stock. (GoFinance)
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