Growth in foreign investment into China slowed last month, the government said yesterday, amid a slowdown in the world’s second-largest economy and concerns over business risks.
Foreign direct investment (FDI) — which excludes financial sectors — totaled US$8.53 billion for the month, the Ministry of Commerce said, up 1.3 percent year-on-year.
The figure compares with a gain of 1.9 percent in September, which came after a four-year-low in August of US$7.20 billion.
For the first 10 months of the year, FDI amounted to US$95.88 billion, the ministry said, a decline of 1.2 percent year-on-year.
China has in recent months launched anti-monopoly, pricing and other inquiries into foreign firms in sectors ranging from auto manufacturing and pharmaceuticals to baby milk.
The probes have raised concerns among investors that Beijing is targeting overseas firms, which the ministry has repeatedly denied.
However, China’s appeal as an investment destination has declined in recent years in the face of rising labor and land costs and competition from Southeast Asian countries such as Vietnam.
Chinese officials have also blamed source country factors, such as Washington’s drive to move industrial production back to the US.
China’s economy expanded 7.3 percent in the July-to-September quarter, slower than the 7.5 percent expansion in the previous three months and the worst result since 2009 at the height of the global financial crisis.
In the first 10 months FDI fell 42.9 percent from Japan to US$3.69 billion, 23.8 percent from the US to US$2.32 billion, 16.2 percent from the EU to US$5.38 billion, and 15.2 percent from ASEAN to US$5.41 billion.
Investment from the UK and South Korea bucked the trend, rising 32.4 percent and 26.4 percent to US$1.18 billion and US$3.29 billion respectively.
Meanwhile, investment by Chinese firms overseas fell last month after a huge jump in September.
Overseas direct investment (ODI) was down 12.2 percent year-on-year at US$6.92 billion, but was up 17.8 percent for the first 10 months at US$81.88 billion.
ODI had soared 90.5 percent in September to US$9.79 billion.
China has been actively acquiring foreign assets, particularly energy and resources, to power its economy, with firms encouraged to “go out” and make overseas acquisitions to gain market access and international experience.
Officials have said that outward investment could exceed FDI this year. Over the 10-month period, Chinese investment in the US jumped 30.5 percent to US$4.19 billion, the ministry said, while that to ASEAN gained 3.9 percent to US$3.99 billion.
Chinese investment in the EU nearly tripled, the ministry said, while that to Japan more than doubled and to Hong Kong it increased 22 percent, the ministry said, without providing totals.
It said that investment in Australia fell 16.7 percent during the period, while that to Russia crashed 78.8 percent, due to a high base effect from last year.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion