Global FDI Influx to China Ranks the World's First

Home>>Business

Last updated at: (Beijing Time) Friday, August 15, 2003

Global FDI Influx to China Ranks the World's First

According to 2003 White Paper on International Trade and Investment released by the Japan External Trade Organization (JETRO) on August 11, FDI influx to China even exceeded FDI influx to the United States ranking the 1st in the world.

DISCUSSION

CHINESE

SEND TO FRIEND

According to 2003 White Paper on International Trade and Investment released by the Japan External Trade Organization (JETRO) on August 11, both the world merchandise and service trades bottomed out with gradual recovery, while the global FDI decreased for two years in a row.

FDI influx to China even exceeded FDI influx to the United States ranking the 1st in the world. Besides, China's export volume also jumped to the world 4th. Imports from China exceeded imports from the US for the first time since World War II, making China the largest import country to Japan.

Due to such factors as the depressed stock markets, the burst of IT communication industry bubble and a turbulent world situation, especially fear of the outbreak of Iraqi war in the second half of last year, global investment activities remained stagnant in 2002. Global FDI (inflow) in 2002 totaled US$653.4 billion, a slide of 17.4% from the previous year. In a breakdown, FDI inflow to the US in 2002 witnessed a sharpest drop, falling by 73.9 percent from the previous year merely to US$39.6 billion, with investment in IT and finance to have decreased by a big margin.

By contrast, FDI inflow to China marked the record high for two years in succession, with US$49.3 billion, 11.5 percent up over the previous year and the 1st around the world. Investment in electron, communication equipment and other manufacturing industries made up 70 percent of the total. Main contributors to the investment growth are as follows: Foreign enterprises, attracted by China's cheap labor cost, shift manufacturing bases into China; China, maintaining its rapid economic growth rate, expands the domestic demands; and countries, anticipating that China will relax restrictions in the circulation and service fields, expand their investments in China. In other regions around the world, global FDI inflow to Central and Eastern Europe marked the highest on record, with US$23 billion and 20.3 percent more than that of the previous year, while FDI inflow to Japan jumped 48.1 percent year-on-year, totaling US$9.2 billion.

As regards foreign trade volume, China posted a foreign trade volume of US$325.6 billion, an increase of 22.3 percent year-on-year and also the highest on record, next only to the US (US$693.1 billion, down 4.9 percent), Germany (US$609.9 billion, up 6.7 percent) and Japan (US$415.8 billion, up 2.6 percent).

In addition, the white paper report also pointed out that, in terms of volume, Japan's exports and imports saw positive growth from the previous year, up 8.4 percent and 1.6 percent from the previous year, respectively, while an expansion of investment in China contributed greatly to this growth. As Japanese enterprises shift manufacturing bases to China, trade in parts also registered a growth. In 2002 Japan's imports from China totaled US$61.7 billion, up 6.2 percent from the previous year. This marks that China, replacing the US, becomes the largest importer to Japan for the first time since World War II.

By PD Online Staff Zhu Lizhen

Questions?Comments? Click here

FDI in First Half-year Reaches US$30 Billion

FDI in China Surges Despite Weak Global Economy

DPRK's Kim Jong Il Elected Member of Parliament ( 2 Messages)

Main Party of China's First Euthanasia Lawsuit Dies ( 2 Messages)

For Whom Does Jackie Chan Feel Pity and Shed Tears? ( 5 Messages)

News Analysis: Bush's Political Fortune to Rise or Fall? ( 4 Messages)

Japan to Be Restored as China's Biggest Tourism Source ( 3 Messages)