Foreign direct investment into China rose for the 15th consecutive month in October, indicating China remains a favored investment destination for foreign businesses.; q7 T3 b6 J! M8 @7 j
Inbound foreign direct investment increased 7.86 percent year on year in October to $7.66 billion, the Ministry of Commerce said Tuesday.
" E' \5 |: m7 {9 [9 C) |$ _ Inbound foreign direct investments for the first 10 months of the year totaled $82 billion, a year-on-year increase of 15.71 percent.
. s2 N( z) g+ P Foreign businesses have begun to shift their investments from export-orientated sectors to domestic market-orientated businesses." u1 [7 u( A$ H2 n
This is due to improvements in the Chinese legal system and expanding consumer markets, Ministry of Commerce spokesman Yao Jian said.1 |6 t K! o ?8 ?6 G7 I1 g
The acceleration in the rate of inbound foreign direct investment growth was due to the United States' second round of quantitative easing, some analysts asserted.
$ Q+ ~9 x, t4 \8 x The Ministry of Commerce's Yao denied there was any connection between the two but said the Chinese government is closely monitoring liquidity.7 k P" t" {: s) I6 p& P* t
The Ministry of Commerce spokesman also said the government is working to restrict hot money inflows that are potentially disguised as foreign direct investments.
2 v5 } T' b- D! }' f& N China's foreign exchange regulator has recently stepped up efforts to curb speculative money inflows fanned by loose monetary policies in the US. |