Foreign direct investment into China rose for the 15th consecutive month in October, indicating China remains a favored investment destination for foreign businesses.
- V) b; B+ Q1 L/ P Inbound foreign direct investment increased 7.86 percent year on year in October to $7.66 billion, the Ministry of Commerce said Tuesday.
* }$ O, e( i4 J5 D$ ? Inbound foreign direct investments for the first 10 months of the year totaled $82 billion, a year-on-year increase of 15.71 percent.
- s/ d# w2 R" ?$ E. f% n Foreign businesses have begun to shift their investments from export-orientated sectors to domestic market-orientated businesses.; Q! Y/ o* m0 n O8 \8 ]9 m8 @
This is due to improvements in the Chinese legal system and expanding consumer markets, Ministry of Commerce spokesman Yao Jian said.$ W' a1 m) i: l3 K: `1 P
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.
1 m$ M; b5 M; p. g* Q* y The Ministry of Commerce's Yao denied there was any connection between the two but said the Chinese government is closely monitoring liquidity.
8 x5 ~5 @2 J4 ?( X2 ~0 o- ~' m The Ministry of Commerce spokesman also said the government is working to restrict hot money inflows that are potentially disguised as foreign direct investments.
0 b7 V8 @" f% Q/ n, g$ K China's foreign exchange regulator has recently stepped up efforts to curb speculative money inflows fanned by loose monetary policies in the US. |