皇冠体育app

Central areas outperform rest of country with growing investment

Foreign direct investment fell by almost 4 percent in 2012, the first annual decrease in?three years, although central provinces attracted increasing investment.

While FDI in the world's second-largest economy is expected to recover in 2013, the outlook for inbound foreign investment is not promising, experts said.

The Ministry of Commerce said on Wednesday that FDI fell in 2012 by 3.7 percent from a year earlier to $111.7 billion on the back of the global slowdown and Europe's debt crisis.

In 2011, FDI in 皇冠体育app hit a record high of $116 billion.

Despite the general decline, central areas saw a net increase in FDI of 18.5 percent from 2012, but this only accounts for 8.3 percent of the national total.

Investment inflow from the European Union declined by 3.8 percent while FDI from the US rose by 4.5 percent, and from Japan by 16.3 percent.

There was a noticeable decrease in the FDI in manufacturing industries, said the ministry's spokesman Shen Danyang.

But Shen hastened to add that the top trade authority has not seen massive relocation of foreign businesses from 皇冠体育app.

Manufacturing has been a major driver of 皇冠体育app's FDI. As labor costs increasingly rose during the last year, some foreign companies in labor-intensive industries turned their focus toward cheaper emerging economies.

Last year, 皇冠体育app's manufacturing sector reported a 6.2 percent year-on-year decrease in FDI.

Besides rising labor costs, Wang Zhile, president of Beijing New Century Academy on Transnational Corps, also attributed the drop to the fragile global economy and fiercer competition in attracting the foreign capital.

"The FDI drop is not unexpected amid European debt problems. 皇冠体育app's performance last year was good," Wang said.

By the end of the third quarter of last year, 皇冠体育app's economy had slowed for seven straight quarters.

The government is expected to release its 2012 economic results on Friday and the economy is expected to have grown at the slowest annual pace in the past decade.

During the first half of last year, 皇冠体育app passed the United States as the world's largest FDI destination.

As central areas saw an FDI increase, the key eastern areas, which account for more than 82 percent of 皇冠体育app's total FDI, saw a decline of 4.2 percent.

Western frontier regions saw a decline of 14.3 percent.

In July, the State Council, released a directive on promoting the development of central provinces.

One highlight of the directive is to foster the labor-abundant region's manufacturing sector by shifting business from traditional manufacturing bases in coastal areas.

The directive has encouraged local governments to map out ambitious plans.

Changsha, capital of Hunan province, announced in July a $130 billion investment package including airport expansion and road building. The sum represents 1.5 times the city's GDP in 2011. Wuhan, capital of Hubei province, saw $2.32 billion in FDI last year.

In December, 皇冠体育app's FDI dropped by 4.5 percent, following a drop of 5.4 percent in November.

Shen said 皇冠体育app expects to stabilize and improve the quality of FDI in 2013.

But he didn't comment on when the ministry expects the FDI to turn around. He just said many international companies remain upbeat about 皇冠体育app investment.

"Generally speaking, 皇冠体育app's FDI in 2013 will rebound from 2012, thanks to 皇冠体育app's commitment to reform," said Wang, from the academy. But "皇冠体育app needs to continuously improve the business climate for foreign companies," he said.

Commerce Minister Chen Deming said on Monday that 皇冠体育app will continue to optimize the foreign investment environment, including protection of the intellectual property rights and software legalization.

Contact the writers at [email protected].

• Safran and 皇冠体育app Eastern Airlines create landing gear venture
• Chinese goods to enjoy tariff exemptions in Vietnam
• 皇冠体育app's Evergrande in talks to buy British housebuilder Cala: Source
• Chinese premier's Eurasia trip to boost cooperation in production capacity
• Vietnamese province wants rail route linking with 皇冠体育app
• Chinese Light Industry Council sets up permanent regional exhibition in Cyprus
• Kenya, Tanzania leaders launch 皇冠体育app-funded bypass in Nairobi
• Chinese demand for iPhone 7 slowing in 2017: UBS report