The year-on-year growth of foreign direct investment (FDI), one of the driving forces of the economy, fell for the third straight month in December, the Ministry of Commerce (MOFCOM) said Thursday. FDI for the whole of last year, however, grew 23.58 percent to $92.4 billion, thanks to the robust growth in the first three quarters. In comparison, actually used FDI in 2007 grew 13.59 percent to $74.8 billion. China has been one of the biggest FDI recipients in the past decade, but the global financial crisis could change the trend, even if slightly, this year, experts said. Mei Xinyu, a senior researcher with the MOFCOM, said he was “not optimistic” about this year, and feared that FDI could even “see a small drop”.
As MOFCOM data show, the top source of FDI last year was Hong Kong, which pumped in $41 billion for a 48 percent annual increase. British Virgin Islands was the second biggest source of FDI, providing $15.95 billion. But the figure is 3.62 percent less than that in 2007.
FDI from Japan rose 1.76 percent to $3.65 billion. It was followed by South Korea with $3.14 billion (14.76 percent or the largest drop) and the US with $2.94 billion (up 12.54 percent). The service industries (excluding banking, insurance and securities) were the major FDI recipients, drawing $38.1 billion, or 24.23 percent more than in 2007. Source: chinadaily.com.cn