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

In January-June, China’s actually utilized FDI reached RMB 441.76 billion (US$69.42 billion), going up 5.1% year on year (data of bank, security and insurance were not included). The official from the Department of Foreign Investment Administration pointed out the characteristics of China’s absorption of FDI in January-June as follows:

The national overall absorption of FDI sustained its growth. In January-June, a total of 13,402 newly-established foreign-invested enterprises were approved, up 12.5% year on year. The actually utilized FDI amounted to RMB 441.76 billion (US$69.42 billion), up 5.1% year on year (data of bank, security and insurance were not included). In June, 2,531 newly-established foreign-invested enterprises were approved, going up 8.5% year on year, and the actually utilized foreign capital reached RMB 98.21 billion (US$15.23 billion), increasing 9.7% year on year.

The absorption assimilation of FDI in hi-tech service sector and hi-tech manufacturing increased, with the growth of hi-tech service being bigger than that of hi-tech manufacturing. In January-June, the actually utilized FDI in service sector reached RMB 310.79 billion (US$ 48.94 billion), up 8% year on year, taking up 70.4% of the national total. That in hi-tech service sector accumulated to RMB 53.74 billion (US$8.47 billion), going up 99.7% year on year. Among these, information technology service, data content and relevant service, R&D and design stood out with an increase of 305.9%, 67.9% and34.9% respectively year on year.

The actually utilized FDI in manufacturing was RMB 124.85 billion (US$19.53 billion), down 2.8% year on year, taking up 28.3% in the national total. Among these, that in hi-tech manufacturing reached RMB 31.47 billion (US$4.92 billion), going up 6.2% year on year. That in medicine manufacturing and medical equipment and instrument manufacturing stood out with a growth of 107.8% and 74.9% respectively year on year.

Investment from major sources continued to increase. In January-June, the actual input of investment from the top ten countries and regions (calculated by actual input value of foreign capital) amounted to US$ 65.65 billion, taking up 94.6% of the total national actual use of foreign capital, going up 2.8% year on year. Among these, those from the US, UK and Germany grew by 136%, 105.3% and 90.3% respectively. The growth of information transmission, computer service and software industry, scientific research, technology service and geological prospecting industry and manufacturing stood out. Over the same period of time, the actual input of foreign capital from the ASEAN countries stood at US$ 3.27billion, down 2.1% year on year. That from the EU countries reached US$ 5.64 billion, up 38.3% year on year.

The input of FDI in western China was higher and that in eastern China remained stable. In January-June, the actually utilized FDI in western China amounted to RMB 32.91 billion (US$5.13 billion), going up 29.5% year on year. The actually utilized FDI in eastern China reached RMB 385.32 billion (US$60.59 billion), up 7% year on year.

There are a large number of the newly set large enterprises with added capital. In January-June, there were more than 380 large foreign invested enterprises with the total investment amount over US$ 100 million, and more than 210 enterprises added US$100 million to their capital. Among them, there were not only manufacturing enterprises that engage in R&D and manufacturing of new materials, new energy automobiles and batteries, aircraft components, integrated circuit and chips, but also service enterprises that engage in medical care, old-age care, e-commerce, cloud computing and R &D and the application of the Internet of Things technology.

The actual use of foreign capital by foreign M&A continued to increase. In January-June, a total of 674 newly-established foreign-invested enterprises were approved with an actual use of foreign capital RMB 92.17 billion (US$14.01 billion), up 5.2% and 14.2% respectively year on year, taking up 5% and 20.9% respectively of their total figures.