Foreign investment in China falls 11% yoy in first quarter

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BEIJING, April 16 (China Daily/ANN) - Foreign direct investment (FDI) in the nonfinancial sector fell by 10.8 percent on the Chinese mainland on a yearly basis to 216.19 billion yuan ($31.2 billion) in the first quarter of this year, the Ministry of Commerce said on Wednesday.

The ministry said investment inflows were affected by the COVID-19 outbreak during the three-month period.

Given the uncertainties in global markets, multinational companies have no plans to cut their investment plans in China as the country has been recovering more steadily from the epidemic and started exporting goods to other parts of the world, he said. China will see more FDI inflows in sectors like medical products, pharmaceuticals and high-tech industries until next year, said Ma.

In the meantime, information services saw 28.5 percent year-on-year growth in FDI flows, while e-commerce businesses notched up gains of 62.4 percent on a yearly basis. Professional technical services was another major gainer with a 95-percent growth in FDI flows on a yearly basis. Wei Jianguo, vice-chairman of the China Center for International Economic Exchanges in Beijing, said it is an opportune time for China to accelerate the pace of supply-side structural reform.

 

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