FDI Growth In China Slows

by Philip Morton, Investors Offshore.com

14 June 2002

Figures released by the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) have revealed that foreign direct investment (FDI) in the Chinese mainland appears to be slowing, after the initial rush of interest following the country's World Trade Organisation entry.

However, according to a report in Thursday's South China Morning Post, this is nothing to be alarmed about. Although the mainland's latest FDI figures fell sharply in May compared with the first four months of this year, the data is continuing to show healthy double-digit growth.

Speaking to the SCMP, Deputy Managing Director and Chief Economist with BNP Paribas Peregrine, Chen Xingdong explained that: 'The main reason for this (drop in the FDI growth rate) is that FDI is now becoming normal, returning to normal operations after the China formally entered the WTO.'

Meanwhile, separate statistics from the Chinese General Administration of Customs have revealed that China's import and export trade and foreign investments have jumped substantially since the beginning of the year.

The GAC revealed on earlier this week that foreign trade to May of this year totalled US$221.55 billion, an increase of around 12.1% on the same period in 2001.

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