China’s 2012 FDI inflows slow, but $100 bn on cards
The commerce ministry said on Tuesday that China drew $91.7 billion in foreign direct investment between January and October, down 3.45% on the same period a year ago, marking the 10th month that aggregate year-to-date flows fell compared with the previous period.
“We can see that there are still many uncertain factors weighing on the global economy and the most severe aspect is the weak world demand,” commerce ministry spokesman Shen Danyang told a news conference.
China's economy is acutely sensitive to external demand, despite a gradual rebalancing towards domestic consumption.
Total exports were worth about 31% of GDP in 2011, according to World Bank data, and an estimated 200 million Chinese jobs are in the export sector or supported directly by foreign investment, making FDI a particularly important gauge of prospects for China’s vast factory sector.
Despite the slowing rate of inflow, China remains firmly on course to secure more than $100 billion of FDI for the third successive year, according to data from the United Nations Conference on Trade and Development, which collates FDI statistics globally.
The FDI figure follows a raft of other economic indicators for October, ranging from exports to factory output and investment, that pointed to a recovery in the world’s second-largest economy gaining pace.
China’s October export growth darted to
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