FDI into China rose 4.9% in first half, shows official data

A woman walks outside a mall in Beijing on May 21, 2013. Foreign direct investment (FDI) into China rose 4.9 per cent year-on-year during the first half of 2013, official data showed on Wednesday, despite slowing growth in the world's second-lar
A woman walks outside a mall in Beijing on May 21, 2013. Foreign direct investment (FDI) into China rose 4.9 per cent year-on-year during the first half of 2013, official data showed on Wednesday, despite slowing growth in the world's second-largest economy. -- FILE PHOTO: AFP

BEIJING (AFP) - Foreign direct investment (FDI) into China rose 4.9 per cent year-on-year during the first half of 2013, official data showed on Wednesday, despite slowing growth in the world's second-largest economy.

Outbound investment from China leapt 29 per cent to US$45.6 billion (S$57.5 billion), the commerce ministry announced, with major increases in the crucial US and Australian markets.

Incoming FDI, which excludes financial sectors, increased to US$62 billion from January through June, the ministry said.

For June itself, it rose 20.1 per cent year-on-year to US$14.4 billion.

"Investment from Japan, the EU and US maintained rather rapid growth," ministry spokesman Shen Danyang told reporters.

Japan invested US$4.7 billion in the six-month period, up 14.4 per cent on year, with EU investment 14.7 per cent higher at US$4 billion and that from the United States rising 12.3 per cent to US$1.8 billion.

The vast majority of FDI investment into China comes from a group of 10 Asian countries and regions including Hong Kong, Taiwan, Japan and Singapore.

Inflows from those economies gained 5.3 per cent on-year to US$53.8 billion during the first six months.

Inward investment fell in 2012 for the first time in three years as clouds gathered over the global economy such as in Europe, while China suffered its own economic slowdown and political tensions soared with Japan.

"It is premature to come to the conclusion FDI has recovered with the single month data in June," Mr Shen said. "But FDI was relatively stable in the first half and gradually rebounded.

"We expect FDI to maintain steady growth in the second half of the year."

China's economy grew at its slowest pace in 13 years in 2012 as gross domestic product expanded 7.8 per cent.

In the first half of this year growth slipped again to 7.6 per cent, the government announced earlier this week.

Overseas investment increased significantly in the period, with money flowing into the United States almost quadrupling, jumping 290 per cent year-on-year.

It almost doubled into resource-rich Australia, where it went up 93 per cent, and investment into the European Union also rose 50 per cent.

However, investment into Japan, with which China is embroiled in a row over disputed islands in the East China Sea, fell 9.1 per cent.

While the data did not specify what investments were made, in May China's Shuanghui International announced it would buy US meats giant Smithfield for US$4.7 billion, while Australia is a crucial source of commodities for Beijing.