A study released by the UN Conference on Trade and Development (UNCTAD) on Monday shows that China's industries, while attracting more foreign investment, are also helping other high-tech manufacturers in East Asia and Southeast Asia to attract more investment.

The UNCTAD report says the facts have proved the worry untenable cherished by some China's neighboring countries that the FDI they urgently need from foreign high-tech industries might divert to China.

The report says: "China has little impact on FDI inflows into other Southeast Asian countries."

The report stressed that as a matter of fact China has the greatest attraction for foreign investment among developing countries. Its economic growth is helping neighboring countries to attract more FDI and enter the integrative production network.

China's efficient manufacturing base strengthens rather than weakens neighboring countries' productive capabilities, enables them to give play to their respective productive advantages, the report added.

The report invoked statistics from China, Indonesia, Malaysia, the Philippines, Singapore, S. Korea and Thailand to reach the conclusion that no relationship of competition exists among the various countries in terms of attracting FDI to their own region.

By People's Daily Online