FDI in China goes up 45.6%

Foreign enterprises invested $52.4 billion in China from January to June, the Ministry of Commerce said, adding the country's economy grew 10.6 per cent year-on-year basis in the first quarter of 2008.     

A solid economic growth, a stronger Yuan and declining US dollar were among major factors that contributed to the FDI surge, analysts said.     

 

The ministry said the number of newly-approved foreign-funded companies totalled 14,544, down 22.2 per cent from the same period a year earlier. However, China's currency gained 6.5 per cent against the US dollar in the first half of the current year.  
   
Chinese forex regulator has urged greater supervision over the inflows of short-term global speculative funds as a large-scale capital flight on rising dollar could undermine the economy and financial security, Xinhua news agency said.     

Analysts believe that tens of billions of dollars of "hot money" has entered the country in the guise of trade and investment so far this year, it said.     

China's exports increased 21.9 per cent year-on-year to $666.6 billion in the first half, while imports rose 30.6 per cent to $567.57 billion, the General Administration of Customs said yesterday.