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FDI warms up as spending kicks in

(Xinhua)
Updated: 2009-04-15 22:16

Efforts rewarded

In some regions, efforts seemed to have already begun to pay off.

Latest statistics showed the FDI in northeastern Liaoning Province rose 20 percent year on year to US$3.62 billion in the first quarter, following trade tours supported by the local government to seal foreign funded deals up to US$10.8 billion in Japan, the Republic of Korea and Singapore in February.

Another trade delegation to Hong Kong led by governor Chen Zhenggao returned to Liaoning on Saturday with foreign investment contracts secured. Further details were not provided.

In Tianjin, a port city neighbouring Beijing, the regional FDI reached US$2.55 billion in the first quarter, up 20.1 percent from a year earlier, with projects on civil aviation, information and equipment manufacturing in the economic development zone attracting foreign investors most.

Confidence is king

While helping attract foreign investors, favorable policies only played a secondary and temporary role in stimulating FDI in China, analysts said.

"Investment is after all about confidence. A rising expectation about China's economic performance this year and recent signs of improvement in the US economy together enhanced investors' confidence," said Zhang.

He expected the country's GDP to stand above 6 percent in the first quarter. It will be slower than the 8 percent annual target set by the government, but still represent a growth pace better than the world average.

"With relatively strong GDP growth, a population of 1.3 billion people, and a huge market that is still growing, China has been and still is the most promising market among world emerging markets," Zhang said.

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