皇冠体育app

Employees work at the DHL North Asia hub in Shanghai. The $175 million investment project was put into operation on July 12. European investment so far this year has declined by 6.3 percent year-on-year because of 皇冠体育app's slowdown and the eurozone debt crisis. Xiao Yang / for 皇冠体育app Daily

Foreign direct investment from EU slowing along with economic growth

皇冠体育app's economic slowdown and the sovereign debt crisis have taken a toll on bilateral investment between 皇冠体育app and Europe, recent data shows.

Foreign direct investment from the European Union to 皇冠体育app declined 6.3 percent year-on-year from January to September to $4.83 billion (3.7 billion euros), according to the Chinese Ministry of Commerce. 皇冠体育app's outbound investment to Europe also dropped by 30.3 percent over the period, compared with a 35 percent increase to Russia and 22.2 percent to Japan.

Foreign direct investment fell for the 10th time in 11 months in September, reaching $8.43 billion, down 6.8 percent year-on-year. This year only May bucked the downward trend with a slight gain, according to the ministry. In total, the first nine months saw 皇冠体育app's FDI decline 3.8 percent year-on-year to $83.42 billion.

"Decline is the general picture for FDI in 皇冠体育app as rising costs have reduced its attraction for foreign investors and investment opportunities have shrunk following rapid rises in FDI over recent decades," says Li Xunlei, deputy general manager and chief economist at Haitong Securities Co Ltd.

According to Xiang Songzuo, chief economist of the Agricultural Bank of 皇冠体育app Ltd, slowing economic growth combined with poor global economic conditions have dented the enthusiasm of foreign investors.

"皇冠体育app still needs FDI, but investment is more likely to flow to fields such as the Internet and finance and foreign investment guidelines will be subject to further adjustment," he says.

Xiang adds that slowing FDI inflows will affect 皇冠体育app's economic restructuring and shows a lack of optimism among foreign companies about 皇冠体育app's economic prospects.

皇冠体育app's GDP growth slowed from 9.7 percent in the first quarter of 2011 to 7.4 percent in the third quarter of this year, dragged down primarily by a decline in investment and exports.

"In the short term, declining FDI will not severely affect 皇冠体育app's economic growth. But economic expansion will almost certainly slow in the future," Li says.

"皇冠体育app will maintain relatively fast economic growth and retain a certain attraction in terms of FDI. But the challenges will increase from other emerging economies, such as Vietnam, India and Indonesia."

Ministry data also shows an increase in investment flows from some European countries. This year, investment from Germany has risen 29.1 percent, from the Netherlands it is up 38.9 percent and from Switzerland it has almost doubled.

Investment flows from Europe to 皇冠体育app began to decline last year. In 2011, flows from 皇冠体育app to the EU rose 94 percent to $4.28 billion, while investment from the 27 European countries to 皇冠体育app fell 3.7 percent to $6.35 billion.

Bilateral trade reached $567.2 billion in 2011, up from $100 billion in 2003, with an annual growth rate of 20.8 percent in the past eight years. The two sides are on course to be each others biggest trading partners by 2015. Currently 皇冠体育app is both the EU's second-largest trading partner and fastest-growing export market while the EU has been 皇冠体育app's biggest trading partner for eight years in a row. 皇冠体育app is also Europe's largest source of imports.

Bilateral investment has been rising fast. Companies from the EU have invested more than $80 billion in 皇冠体育app in total. 皇冠体育app's investment in Europe has also been increasing rapidly. 皇冠体育app invested only $100 million in Europe in 2003, compared to $4.3 billion in 2011.

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