A report recently published by China's National Development and Reform Commission (NDRC) shows that despite the ongoing economic crisis, many multinational companies have been quietly increasing their investments in China since the end of last year.

Amongst the multinational companies that have been increasing the focus on their Chinese operations are IT giants 3M, Sisco and Intel, worldwide pharmaceutical leader DuPont, and Japanese retail tycoon Aeon, in addition to General Motors which has found itself on the verge of bankruptcy protection.

The report indicates that amid the crisis the advantages of China's investment environment are becoming more apparent, attracting increasing investment from a series of companies possessed with long-term strategic thinking. Meanwhile, the report also urges China to make the most of the opportunity offered both by the domestic and international markets in stimulating the economy and states that China needs to work harder on its domestic business environment to better host these foreign investments. Furthermore, Chinese companies are also warned of the potential risk of being marginalized in the face of the inflow of overseas capital.

As of November last year, foreign capital registered in China in 2008 totaled US$86 billion, up 26.3% year on year, making China the country with the largest amount of FDI. However, Q1 2009 has revealed a drop of 20.6% in foreign investment, amounting to US$21.78 billion, but the decrease seen from the first month this year is easing off.

For more information, please consult the Chinese coverage at:

http://www.21cbh.com/HTML/2009-4-28/HTML_SJGNUW0BCEU0.html

(China.org.cn by Maverick Chen, April 28, 2009)