Why FDI into China Outperformed the World

WORLD foreign direct investment (FDI) fell significantly in 2012. Global data are unavailable for the second half of the year, but United Nations Conference on Trade and Development statistics show that FDI fell by eight percent worldwide in the first six months to US $668 billion. Many large economies suffered severe declines-FDI into the U.S. fell by 39 percent and into     

More Rational Distribution.of FDI in China

THE Global Investment Trend Monitor released last October by the United Nations Conference on Trade and Development(UNCTAD)revealed that China had surpassed the U.S.in the first half of 2012 as the world’s largest recipient of foreign direct investment(FDI).The statement was corroborated by figures from China’s Ministry of Commerce:in the first three quarters of 2012,the foreign investment China’s mainland used in real terms added up to US $83.42 billion.Though this marks a 3.8 percent dip compared with the same period in 2011,the sum going into the service industry(excluding real estate)picked up.Meanwhile,transnational corporations built more R & D centers and regional headquarters in the country,signifying their confidence in China’s investment environment and prospects for growth.The continued influx of global capital,technology and professionals led to more rational distribution and structure of FDI in China.     

China''''s Foreign Trade Under a Stronger Yuan

CHINA'S trade surplus isheading for an all-timehigh in 2005, for the 11thyear running. A recent re-port issued by the StateInformation Center's Macro-economyMonitoring and Pre-warning ResearchGroup says that China's imports and ex-ports will see respective growths of 18and 22 percent in the second half of thisyear, creating a trade surplus of morethan US $30 billion. That, combinedwith the US $39.6 billion in the first halfof the year, will bring the year's tradesurplus to US $70 billi…     

Exchanoes

During the first eight months of this year Chinese compa- nies undertook US $56.5 billion of Overseas Direct Invest- ment （ODI） in 3,583 overseas enterprises in 156 countries and regions - a year-on-year increase of 18.5 percent. US $39.11 billion, or 69.2 percent, of this sum went to seven major economies - Hong Kong, ASEAN, the EU, Australia, the U.S., Russia and Japan. Other than in Hong Kong and Japan, which experienced a dip in investments from the Chinese     

China and the U.S. Should Pull Together, Not Rock the Boat——An Interview with Jia Xiudong, Invited Research Fellow of the China Institute of International Studies

Equal treatment for Chinese enterprises in the U.S. was an agenda item in the second round of the China-U.S. Strategic and Economic Dialogue (S&ED). By the end of 2010, American investment in China exceeded US $60 billion, while China’s investment in the U.S. was only one-f ifteenth of that, around US $4 billion.     

Business in Brief

According to IDC statistics, in 2001 the sales volume of the Chinese software market amounted to US $1.7 billion, an increase of 62.8 percent over 2000. The IDC predicts that between 2001 and 2006, the software market will grow at an annual average rate of 37.8 percent to reach a sales volume of US $8.6 billion, equivalent to 70 billion yuan, in 2006.In the face of the international market slump, software giants such as Microsoft, IBM, HP, Oracle and SAP are looking to China with competition in mind.     

Beijing, Fair Spurs Trade in Servtces

LAST year the imports and ex- ports of China＇s service indus- try reached US $470.58 billion, a steep rise from the US $66 billion in 2o00, and its global ranking leaped from the No. 12 to No. 3. It was in this context that the China Beijing International Fair for Trade in Services was launched. As international cor- porations flock to the Chinese market lured by its tantalizingly large demand for quality services, they cannot over- look this event, which is emerging as a part of the structure and trendsetter of ChinKs service industry.     

Off the Chinese Press

Repayment Ability StrongAccording to the State Administration ofForeign Exchange, China's foreign debts addedup to US $147.63 billion at the end of June.This figure represents a decrease of US $4.2billion, or 2.8 percent, from that of last year.The reduction is mainly attributable to thefluctuation of exchange rates in the international market. For example, the depreciation of theeuro and the Japanese yen has directly reducedChina's debts in these currencies whenexchanged for US dollars…     

Focus

According to a joint investigation by a group of top world companies, China has for the first time surpassed the U.S. to become the most favored destination for direct foreign investment. The Financial Times reports that the September 11th incident has provoked worries about security in the U.S among foreign investors. According to UN statistics, nearly US $50 billion of direct foreign investment was channeled into China in 2001, and still more is on its way. Foreign investment in the United States, on the other hand, dropped from its 2000 level of US $301 billion to US $125 biinon.     

Beijing Fair Spurs Trade in Services

LAST year the imports and exports of China’s service industry reached US $470.58 billion, a steep rise from the US $66 billion in 2000, and its global ranking leaped from the No. 12 to No. 3. It was in this context that the China Beijing International Fair for Trade in Services was launched. As international corporations flock to the Chinese market lured by its tantalizingly large demand for quality services,     

Business in Brief

Foreign Financiers Look to China Overseas financial firms are keeping a close eye on China's credit card market, which by 2010 is expected to generate an annual income of at least US $3 billion. If restrictions on foreign financial firms were to be lifted, domestic financial organizations to update their outlook and data on consumer credit to become more available, this figure could exceed US $5 billion — the same level as Taiwan. China's affluent social stratum is expanding, and by 2010 the number of households with an annual income in     

Cozy Business Ties

Since 1975, Germany has been China's largest trading partner in Europe. China is currently Germany's largest trading partner in Asia, with a trade volume totaling $78 billion in 2006, up 23.6 percent from a year before. Germany has also been the biggest European investor in China, with an accumulated investment of about 10 billion euros ($7.4 billion). German FDI going to China totaled $1.98 billion last year, a year-on-year increase of 29.3 percent. In an exclusive interview with Beijing Review, Jutta Ludwig, Executive Director of the German Chamber of Commerce in China and Chief Representative of the Delegation of German Industry & Commerce Beijing, discusses the secrets of this cozy business relationship, talking about the chamber's role in promoting bilateral economic ties, German investments in China, as well as intellectual property rights (IPR) issues involved in Sino-German technology     

Slow to Rev Up New Energy Vehicles in China

WHILE about US $44 billion worth of economic stimulus capital and other encouraging funds have been input into the development of new energy autos worldwide, the Chinese government stepped up to the plate in June to announce a trial program to subsidize purchases of new energy and energy-saving vehicles.     

Jiangsu Foreign Trade and Economy Reaps a Rich Harvest

Ji Yunshi (second left, front), governor of Jiangsu, Ye Jian (first left, front), chief of Jiangsu Foreign Trade and Economic Cooperation Department, and Qi Changyu (first right), deputy chief of the Department, at the 5th China Jiangsu Export Commodities Fair held in Japan's Osaka in May 2000.EXPORT volume for 1974 (the year the trading port opened): US $77 million;Export volume for 1990: US $2.949 billion;Export volume for 1996: over US $10 billion;Export volume for the period …     

ECONOMY

正FDI Slows China received $7.73 billion in foreign direct investment (FDI) in February,down 0.9 percent from a year ago,dropping for the fourth straight month,said the Ministry of Commerce (MOFCOM).The amount for the first two months of this year totaled $17.72 billion,edging down     

ECONOMY

<正>Investment Data Foreign direct investment(FDI)into China’s mainland rose 1.9 percent year-on-year to 64.9 billion yuan($10.36 billion)in November,the Ministry of Commerce(MOFCOM)said on December 11.Growth slowed from a 4.2-percent rise in October.For the first 11 months,FDI,which excludes investments in the financial sector,stood at 704.33 billion yuan($114.04 billion),up 7.9 percent from the same period last year.During the period of January to November,foreign investment in the     

Exchanges

China is the second largest source of international buyers of U.S. properties, next only to Canada, according to the National Association of Realtors 2013 Profile of International Home Buying Activity. During the year ending March 2013, Chinese purchasers spent US $12.3 billion on U.S. real estate, hey appear most interested in houses in the upper price range, of a median price of US $425,000 - almost double that within the States and 50 percent higher than the median price for international purchases. Even more astonishing is the fact that around 70 percent of Chinese buyers pay in full.     

China-Africa Cooperation More Diversified

THE recently issued govern- ment white paper on China- Africa economic and trade cooperation, the second on the topic published since 2OLO, un- derlines the latest achievements of the mutually beneficial cooperation be- tween China and African countries. It shows that in 2012, the total volume of China-Africa trade reached a new high of US $198.49 billion, a year-on- year growth of 19.3 percent. China＇s exports to and imports from Africa also surpassed previous years＇ figures, indicating a growing momentum in this area despite the slow global eco- nomic recovery.     

China’s Fishery Pioneer

F OUNDED in 1945, the Da- lian Ocean Fishery Group in Northeast China’s Liaoning Province is a state-owned enterprise with assets of RMB 2 billion (US $250 million) and a staff body numbering more than 7,000. The group is located in the Dalian Bay Fishing Port, which encompasses a sea area of 1.2 million sq m and a land area of 1.09 million sq m. To its south, the Yellow Sea ocean navigation route links it with other major ports around the world, while to its north, modern rail- way…     

Beijing in Favor of Transnational Investment

A ccording to the Beijing Municipal Foreign Economic Relations and Trade Commission, the number of certified regional headquarters of transnational companies in Beijing had reached 20 by August, and in the first seven months of this year utilized foreign investment in the city amounted to US $3.3 billion. This year Yamaha, Sony-Ericsson and British Petroleum entered Beijing,