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China's realized foreign direct investment (FDI) in 2006 is expected to be almost as high as that in 2005, which was US$60 billion, according to Lu Jianhua, director of Foreign Trade Department of the Ministry of Commerce (MOFCOM).

 

Hu Jingyan, director of Foreign Investment Administration with MOFCOM, was quoted by Shanghai Securities News as saying the current volume of China's FDI is as yet insufficient. He added that MOFCOM would take measures to encourage more foreign investment in China.

 

FDI to China dipped 0.5 percent year-on-year to US$60.33 billion last year, excluding investment in banking, insurance and the securities sectors, according to the latest statistics from MOFCOM.

 

This is the first time that FDI has fallen in China since 1999.

 

The ministry said the Chinese government had approved 44,001 new foreign-invested ventures in 2005, up 0.77 percent year-on-year.

 

Chong Quan, another commerce ministry spokesperson, said foreign investment to China kept up a good pace in 2005 with improvements in quality and efficiency.

 

Chong said that 2005 saw a rapid increase of European Union investment to China, but a moderate decrease of actual investment from the United States and 10 Asian countries. Hong Kong remains a major foreign investment source.

 

He said the structure of investment in China was enhanced in 2005.

 

"Foreign investors are showing strong enthusiasm for investment in high-tech fields and research and development centers," he said, adding that FDI in telecommunications equipment, computer and other electronics manufacturing, and transportation equipment manufacturing also increased.

 

(China Daily January 17, 2006)