Initial FDI in mainland China of 2013

According to the statistics, in January 2013, Newly Approved Foreign-invested Enterprises amounted to 1,883, up by 34.31% year on year; and the actual use of foreign investment reached US$ 9.27 billion, down by 7.27% year on year.

In January, 2013, the number of newly established enterprises funded by ten Asian countries/regions (Hong Kong, Macao, Taiwan, Japan, the Philippines, Thailand, Malaysia, Singapore, Indonesia, ROK) was 1,475, up by 33.48% year on year, and the actual input were US$ 7.816 billion, down by 8.97% year on year. The number of newly established enterprises funded by US was 94, up by 9.3% year on year, and the actual input were US$ 0.273 billion, down by 19.97% year on year. Number of enterprises funded by EU was 140, up by 30.84% year on year, and the actual input was US$ 0.821 billion, up by 81.81% year on year.

In January this year, the top ten nations and regions with investment in China (as per the actual input of foreign capital) are as follows: Hong Kong (US$ 5.709 billion), Japan (US$ 639 million), Taiwan Province (US$ 631 million), Singapore (US$ 630 million), France (US$ 292 million), U.S.A. (US$ 273 million), Germany (US$ 115 million), Sweden (US$ 108 million), U.K. (US$ 90 million) and R.O.K. (US$ 88 million), total of which accounted for 92.5% of total actual use of foreign investment in the country.

An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, where overseas institutions invest in equities listed on a nation’s stock exchange. The accepted threshold for a foreign direct investment relationship, as defined by the OECD, is 10%. That is, the foreign investor must own at least 10% or more of the voting stock or ordinary shares of the investee company.

The actual use of foreign investment refers to the actual amount of foreign investment. It is always about the actual arrival of foreign capital after the contract signed. If the investment earnings are used as the reinvestment capital, they need to be added into the statistics of the actual amount of foreign investment; if not, this part of capital would not be added.

Source: Ministry of Commerce Website; http://english.mofcom.gov.cn/article/newsrelease/significantnews/201302/20130200035987.shtml; http://www.fdi.com.cn/app?page=CydxDetail&service=page&id=5c42bce33c145de2013c4caeda65008f

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