Thursday, October 30, 2008

China remains the largest FDI attractor among developing countries

China has been the largest foreign investment absorber among developing countries for 15 years since 1993, a report on the accomplishments of China over the past 30 years of reform and opening up released by the National Bureau of Statistics said.

The report noted that prior to 1992, China's foreign investment had been mainly in the form of foreign loans, particularly government loans, and foreign direct investment (FDI) volume had been comparatively low.

Since 1992, FDI in China has increased by a large margin year by year, and has become major means for China to make use of foreign funds. In 1983, FDI in China was only US $916 million, while in 2007 it had reached US $74.8 billion, increasing by 81 times in 24 years.

By the end of 2007, the FDI in China during the past 15 years had totaled over US $770 billion, growing at an average annual rate of 20.1%, much higher than the GDP growth rate over the same period.

In 2007, China attracted US $74.8 billion of FDI. Adding that to the foreign direct investment coming from the financial sector, the amount hit US $83.5 billion, making up 5.4% of global FDI, and 19% of the total FDI in developing countries.