Rising costs pull down China's foreign investment
(Xinhua)
Updated: 2006-07-18 19:59
China's investment costs have been on the rise this year and slightly hurt
the inflow of foreign direct investment over the first six months, spokesman
Zheng Jingping of the National Bureau of Statistics said in
Beijing Tuesday.
Zheng attributed the rising costs to the stricter demands of the Chinese
government on environmental protection, social security for workers and the use
of land resources when answering questions at a press conference held by the
Information Office of the State Council.
Official data showed that China's foreign direct investment has edged down
0.47 percent from January to June to US$28.428 billion.
Zheng said that the world's competition for foreign direct investment has
intensified as many countries have doubled their efforts to attract foreign
capital.
Another factor contributing to the decline, he said, was the "relatively
abundant" private capital in China.
Given that the foreign direct investment in China has already hit US$50
billion and stayed at that level for many years, Zheng said it was difficult for
the country to set a new record high.
He said that the year's prospect in attracting foreign capital would be as
good as ever. "A slight decline will help China to improve its balance of
payments, make better use of foreign capital and ensure a more healthier
economic development," Zheng said.
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