Sharp fall in FDI to China

[Ulhas Joglekar]

19 November 1999
Sharp fall in FDI to China
BEIJING: Actual foreign direct investment (FDI) in China fell 10.5 per cent
to $ 32.1 billion from January to October compared with a year earlier, the
ministry of foreign trade and economic
Cooperation reported on Thursday.
The decline reflects waning interest among foreign businesses discouraged by
anaemic profits, uncertainty over policy changes, corruption and other
troubles.
The downward trend in foreign investment inflows was one factor that pushed
China toward reaching an agreement with the US on Monday that will help it
gain membership in WTO. Given the many restrictions and arbitrary policy
enforcement they face in China, many foreign investors view China's entry
into WTO as a prerequisite for further expansion here.
Contracted FDI in the same 10-month period fell ever further, by 20.6 per
cent on year to $ 31.275 billion, the ministry reported.
The ministry did not release official figures for October, but extrapolating
from the report, analysts said actual FDI was only $ 2.87 billion for the
month, down from $ 4.48 billion in September, while contracted FDI fell to $
1.675 billion compared with $ 4.270 billion in September.(AP)

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