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back to index backCHINAtalk November,  2004


Foreign direct investment migrating north

Government data showed foreign direct investment shifting directions in dramatic ways.

Hainan-bound FDI plummeted 60% year on year, and Fujian-bound FDI fell 39%, in the first seven months of 2004. Guangdong, once the recipient of the lion's share of FD[, recorded a year-on-year decline of 10% in the first seven months of 2004, with Shenzen's share falling by 18%.

The gainers included Yunnan province, which saw FDI skyrocket by 578%, and western Shanxi with a gain of 203%. Guangxi Autonomous Region and the northern coastal provinces of Shandong and Liaoning made up the rest of the top five FD[ gainers, all with increases near 100% or above.

A Ministry of Commerce official said foreigners were gaining a better understanding of the China market, were adjusting investments and spending more and moving more aggressively into financial services, the chemical and energy sectors, car-making, telecommunications, logistics and consumer products.

Source: China Economic Review


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