Investment surges by 46.9 percent year-on-year in January

Japanese investment in China surged in January after months of decline last year.

The development indicates that the world's third-largest economy continues to count on the Chinese market to put economic growth on a firmer footing amid growing domestic and international economic problems.

Japanese contracted investment in China rose by 46.9 percent year-on-year in January. The number of new enterprises set up by Japanese investment increased by 3.5 percent and actual investment rose by 3.2 percent, the Ministry of Commerce said on Monday.

At a news conference, the ministry did not provide a total amount for Japanese investment last month.

Shen Danyang, the ministry's spokesman, said China's high-quality labor force, developed infrastructure facilities, improved business environment and ongoing urbanization were the main factors that attracted increased Japanese investment in January.

Japan's direct investment in China fell by 38.8 percent year-on-year in 2014 to $4.33 billion.

The decline, compared with a fall of about 4 percent in 2013, reflects soured bilateral relations over territorial and wartime historical issues, as well as rising operational costs in China.

Shen said, "The January growth trend will continue as China is diversifying its export channels through e-commerce trade platforms and favorable policies resulting from bilateral or multilateral free trade agreements."

Zhao Zhongxiu, a trade professor at Beijing's University of International Business and Economics, said China's incoming investment last year rose generally at a time when global investment flows were less than robust.

"Japan is still confronting issues such as slow demand in the global market last year, inflation, labor shortages and a long-term financial deficit," Zhao said.