China still major investment destination for MNC

Statistics show that the amount of foreign capitals used by China is decreasing. How should we look on China's foreign capital use? Regarding this question, the reporter interviewed a relevant official from the Ministry of Commerce of China (MOC).

In the first five months of 2012, the number of new enterprises invested and established by foreign merchants in China was 9,261, down 12.16 percent compared to that of the same period of 2011, and the total amount of foreign capitals actually used by China was 47.11 billion U.S. dollars, down 1.91 percent compared to that of the same period of 2011.

In May, the number of new enterprises invested and established by foreign merchants in China was 2,245, down 6.11 percent compared to that of May of 2011, and the total amount of foreign capitals actually used by China was about 9.23 billion U.S. dollars, up 0.05 percent compared to that of May of 2011.

In first five months of 2012, the total amount of foreign capitals actually used by China had decreased by 1.91 percent and the flow direction of global direct investments has changed.

Since the beginning of 2012, China's foreign capital use has been facing severe domestic and international situations.

In terms of data, the total amount of foreign capitals actually used by China in the first five months had decreased by 1.19 percent and the amount had decreased for six successive months from November of 2011 to April of 2012.

The official in charge of the Department of Foreign Investment Administration under the MOC said that various factors have led to some new changes in the flow direction of global direct investments.

Domestically, various factors, including the rise of the labor cost and the short supply of land recourses, make foreign investment enterprises' operations in China still have certain difficulties.

“It is expected that the total amount of foreign capitals used by China in the first half of 2012 will be fundamentally equal to that of the first half of 2011,” said the official.