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Global firms' expansion boosts FDI growth
(Xinhua)
Updated: 2004-12-15 13:45

Foreign direct investment (FDI) in China surged in the first 11 months of this year as the country further opens its industries to overseas companies.

The country’s actual FDI climbed 22.05 percent to US$57.55 billion in the 11-month period from a year earlier, after a 23 percent jump in the first 10 months, the Ministry of Commerce said in a statement Tuesday.

Contracted FDI, a sign of future investment, also rose 34.36 year on year to US$135.04 billion in the first 11 months.

The country approved the establishment of 39,291 new foreign-funded companies during the 11-month period, up 7.31 percent from the same period last year, the ministry said.

Earlier this week, the State Development and Reform Commission, forecast the full-year actual FDI would reach more than US$60 billion, up 13 percent from last year.

Analysts attribute the growth momentum to the country’s further opening up its industries, which has lured many global giants like Wal-Mart Stores Inc. and rival Carrefour SA to the world’s most populous economy.

Geographical limitations on foreign companies in the retail and distribution businesses in China were removed last weekend, the third anniversary of its WTO entry.

Wal-Mart, the world’s largest retailer, has announced plans to open 15 stores in China next year, adding to 40 it operates now in Beijing, Shenzhen and other cities. The company has already invested about 1.6 billion yuan (US$193 million) in the world’s seventh-largest economy.

Paris-based Carrefour, Europe’s largest retailer, also said last month it planned to boost its supermarkets and larger supercenters in the country to 59 this year from 53 at the time.

In a separate development, the Korea Trade-Investment Promotion Agency said Tuesday that South Korean firms invested more than US$5.8 billion in China in the first 10 months of this year, which dwarfed the full-year volume of US$4.49 billion last year.

South Korea is now the third-largest foreign investor in China behind Japan and the United States.

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