China's FDI Down 17.8% in May

BEIJING, June 16 -- China's foreign direct investment (FDI) declined 17.8% year on year to US$6.38 billion in May, according to statistics released by the Ministry of Commerce (MOC).

    The decline in May is the eighth consecutive drop since last October, but the drop is less than the decline of 22.51% in April.

    China approved the establishment of 1,469 foreign-invested enterprises in May, 32% fewer than last year.

    In the first five months of this year, China's FDI declined 20.4% and reached US$34.05 billion, while the number of the newly established foreign enterprises plunged 33.8% to 7,890, said MOC spokesman Yao Jian.

    The MOC's statistics show that the central and western regions suffered the sharpest declines in FDI. FDI in Central China decreased 35.7% during the period from January to May, while FDI in West China declined 30.29% year on year.

    The drop for eight consecutive months is the first of its kind since the financial crisis of 1997, said Yao, adding that the MOC will focus on supporting enterprises that carry out structural adjustment, promote regional development and engage in environmental protection.

    Earlier, the MOC said it was simplifying the approval procedures to attract more foreign investment.

    (Source: China Knowledge)