Foreign Investment in August Up for 13th Straight Month to US$7.6 Billion

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Sept. 15 – Foreign direct investment coming into the country rose for the 13th straight month in August by 1.38 percent to US$7.602 billion despite complaints made by multinational corporations on the increasingly difficult regulatory environment in China.

This brings foreign direct investment for the first eight months of the year to US$65.96 billion, an 18 percent increase compared to last year. A United Nations study predicted last week that China will remain one of the top destinations for foreign direct investment along with Brazil and India until 2012.

In 2009, China was the second-largest recipient of FDI after the United States with an estimated US$130 billion worth of investments. Foreign investors remain confident in the growing Chinese market but have been more vocal in expressing frustration over the business environment that favors local companies.

China’s State Council assured businesses in August that it would make policy changes to improve the foreign investment climate in the country. Moreover, Premier Wen Jiabao reiterated that stance on Monday, saying that the government will work towards treating all goods made in the country fairly.

The UN’s trade and development agency, UNCTAD forecasts that overall international foreign direct investment will reach US$1.2 trillion in 2010 and will rise to US$1.5 trillion in 2011 and US$2 trillion in 2012.