China’s FDI Soars 11% to $8.4 billion in August
Foreign direct investments in China rose by 11 percent to $8.4 billion in August, the government said in a report, proving that foreign companies want to partake of the growing consumer market in the country.
Wang Zhile, director for the research center for transnational corporations, announced on Friday that China's FDI rose by 11 percent to a $8.4 billion from last year.
"China's attractiveness as a destination for foreign investment is still strong, and continues to be," Mr Wang said.
From January to August 2011, China recorded an increase in its FDI by 17.7 percent to $77.63 billion.
Coca Cola also announced its plan of investing $4 billion in another plant in China over the next three years beginning next year. The investment is on top of Coca Cola's $3 billion earlier investment made since 2009.
"The huge consumption market, improving foreign investment environment and competitiveness of local workers will continually drive inflows of foreign investment into China," he said.
From January to August, the country's FDI surged 17.7 percent to $77.63 billion.
Minister of Commerce Chen Deming said recently that China's foreign investment environment will continue to remain competitive in the long term thanks to good infrastructure and labor resources, despite the nation facing new challenges like higher labor costs.
Mr Chen said China will further improve the investment environment, including providing equal treatment for foreign companies with their local counterparts, coming up with innovative ways of attracting FDI and widening the area for FDI, the China Daily News said.
It further said that in April 2010, the State Council issued new FDI development guidelines, which encouraged foreign companies to invest in China through mergers and acquisitions.
The government's ruling to scrap the government procurement to indigenous innovation by domestic firms imposed in July this year, gave foreign firms better access to the domestic market.
The United Nations Conference on Trade and Development said in July that China is and will continue to be the most attractive market for foreign investors in the next two years, reports said.