Actual use of foreign capital down, imports from Europe, US and Japan up

According to the official website of the Ministry of Commerce on June 15, in May China has actually utilized foreign capital of 4.509 billion US dollars, down by 7.86percent over the same period of last year. In the first five months of this year, the growth of China's imports from Europe, the U.S., Japan was 20.6, 18.4 and 11.4 percentage points higher than the same period of last year.

Chong Quan, spokesman of Ministry of Commerce said in a routine press conference that change in a month was normal and did not mean anything wrong with the foreign investment in China.

He also said the utilization of foreign capital had maintained a steady growth and posted between 50 to 60 billion US dollars for more than 10 years, and it is unrealistic to continue a sharp growth.

From January to May, the newly established foreign-invested enterprises in China reached 15,659, down by 4.73percent compared with the same period of last year. The foreign capital actually utilized amounted to 22.989 billion U.S. dollars, an increase of 2.78percent.

The data also shows that over the first five months of this year China's import from Europe, the U.S., Japan grew by 21.8 percent, 21 percent and 14.6 percent, all much faster than the same period of last year.

The trade with major trading partners all surged. During the previous five months, China achieved bilateral trade growth of 20.2 percent, 25.4 percent, 12 percent, and 19 percent respectively with Europe, the U.S. Japan, and South Korea.

The trade structure improved during the first five months. According to the customs statistics, the import and export of mechanical and electrical products and high-tech products hit 360.34 billion US dollars and 193.39 billion US dollars, up by 30 percent and 31.8 percent, contributing 55.6 percent and 29.9 percent to the total trade value respectively.

General trade experienced speeding imports and slowing exports. General trade stood at 276.56 billion US dollars, an increase of 22.7 percent, in which import contributed 129.09 billion US dollars, an increase of 19.5percent and 12.5 percentage points faster than the growth speed of the same period of last year. The exports contributed 147.46 billion US dollars, an increase of 25.5percent, down by 12.3 percentage points over the same period of last year.

Processing trade grew steadily, still making up half of the country's foreign trade. In the first five months the processing trade recorded 307.43 billion US dollars, an increase of 23.9 percent, accounting for 47.5 percent of the total foreign trade, in which exports was 185.72 billion US dollars, an increase of 24.8percent. The export rise was 4.6 percentage points lower than that of the same period of last year. The imports was 121.71 billion US dollars, an increase of 22.4percent.

Chong Quan briefed the severe situation of trade frictions. During the first five months, 18 countries and regions initiated 32 trade relief investigations to China, involving 480 million U.S. dollars.

By People's Daily Online