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Official from the Department of Foreign Investment Administration Comments on China’s Assimilation of FDI in January-May 2016

In January-May 2016, China’s actually utilized FDI registered RMB343.55 billion (US$54.19 billion), going up 3.8% year on year. The official from the Department of Foreign Investment Administration pointed out the characteristics of China’s assimilation of FDI in January-May as follows:

The national overall assimilation of FDI sustained its growth. In January-May, a total of 10,871 newly-established foreign-invested enterprises were approved, up 13.5% year on year. The actually utilized FDI amounted to RMB343.55 billion (US$54.19 billion), up 3.8% year on year. In May, 2,573 newly-established foreign-invested enterprises were approved, going up 43.6% year on year, and the actually utilized foreign capital reached RMB56.77 billion(US$8.89 billion), decreasing 1% year on year.

The assimilation of FDI in hi-tech service sector and hi-tech manufacturing increased. In January-May, the actually utilized FDI in service sector reached RMB241.8 billion (US$38.22 billion), up 7% year on year, taking up 70.4% of the national total. Among these, that in distribution service and transportation service grew by 212.4% and 76% respectively year on year. That in hi-tech service sector accumulated to RMB40.38 billion (US$6.37 billion), going up 94.7% year on year. Among these, information technology service, data content and relevant service, R&D and design stood out with an increase of 238.3%, 88% and 33.9% respectively year on year.

In January-May, the actually utilized FDI in manufacturing was RMB98.86 billion (US$15.52 billion), down 3.2% year on year, taking up 28.8% in the national total. Among these, that in hi-tech manufacturing reached RMB25.88 billion (US$4.06 billion), going up 2.3% year on year. That in medicine manufacturing and medical equipment and instrument manufacturing stood out with a growth of 111.6% and 47.4% respectively year on year.

Investment from major countries and regions continued to increase. In January-May, the actual input of investment from the top ten countries and regions (calculated by actual input value of foreign capital) amounted to US$51.22 billion, taking up 94.5% of the total national actual use of foreign capital, going up 1.3% year on year. Among these, that from the US, UK and Germany grew by 140.2%, 110% and 20.6% respectively. Over the same period of time, the actual input of foreign capital from the ASEAN countries and 28 EU countries stood at US$2.98 billion and US$4.12 billion respectively, going up 13.3% and 24.5% respectively year on year. That from countries along the “belt and road” reached US$3.05 billion, going up 1.3% year on year.

The input of FDI in western China was higher and that in eastern China remained stable. In January-May, the actually utilized FDI in western China amounted to RMB26.25 billion (US$4.1 billion), going up 31.2% year on year, far higher than the national average. The contract value of foreign capital in central and western China was RMB 73.97 billion (US$11.35 billion) and RMB49.06 billion(US$7.58 billion), going up 15.2% and 26.5% respectively year on year. The actually utilized FDI in eastern China reached RMB297.12 billion (US$46.91 billion), up 4.7% year on year.
  
The actual use of foreign capital by foreign M&A continued to increase. In January-May, a total of 544 newly-established foreign-invested enterprises were approved with an actual use of foreign capital RMB71.77 billion (US$11.11 billion), up 3.2% and 19.9% respectively year on year.