China's attempt to attract US$60 billion of foreign direct
investment (FDI) this year is questioned as actually used FDI in
July reported less than the average amount of the first half
year.
The Ministry of Commerce (MOC) said China actually
used US$3.1 billion of foreign investment in July, compared with
US$5 billion monthly on average in the first half of this year.
Hu Jingyan, a senior official with the MOC, admitted that it
would be difficult for the country to top US$60 billion of actually
used FDI by the end of this year, which meant the country would
have to use US$5.3 billion of FDI every month in the last five
months.
But the actually used FDI was expected to reach US$56 billion to
58 billion this year with year-on-year growth of seven to 10
percent, he added.
China used US$33.35 billion of FDI in the first seven months of
2003, a rise of 26.63 percent year on year while contractual FDI
rose by 33.96 percent to US$59.17 billion, according to the
ministry figures.
Last year the country reported a record high actually-used FDI
of US$52.7 billion, the highest in the world.
The outbreak of SARS in the first half of this year had not had
an obvious effect on the country's economy in the second quarter.
The actually used FDI reported US$6.98 billion in June.
The impact seemed delayed until July when some 500 foreign
investment projects were affected by the epidemic.
China was facing more competition from other countries in the
global market as they lifted government controls and widened market
access to attract more foreign investment, said Ma Xiuhong, vice
minister of commerce.
China has to further improve its domestic environment for
foreign investment in a bid to increase the competitiveness in the
global capital market, she said.
(Xinhua News Agency September 5, 2003)