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China still most attractive to foreign funds: official

(Xinhua)
Updated: 2009-09-10 00:56

XIAMEN: China remains the most attractive country for foreign capital, despite that the country's foreign direct investment declined for ten straight months, a commerce official said Wednesday.

"China has been the top destination for foreign capital for 17 consecutive years," Wang Chao, assistant commerce minister, said at the World Capital Forum in Xiamen, east China's Fujian Province.

Related readings:  Brake on hot money leads to drop in FDI  China's FDI falls 35.7% in July  On China's rapid growth in outward FDI  China's used FDI down 17.9% in H1  FDI is still flowing despite downturn

A report released by the United Nations Conference on Trade and Development (UNCTAD) on July 22 showed that China stands first on the list of five most attractive destinations for foreign capital, followed by the United States, India, Brazil, and Russia.

The country has received US$48.3 billion of foreign direct investment (FDI) from January to July this year, down 20.3 percent over the same time last year amid a global economic downturn, Wang said.

Wang said the country's prospects for overseas investment remains optimistic as it would simplify examination and approval procedures toward foreign investors.

It will also guide foreign investment to go to high technology industry, advanced manufacturing industry, energy saving and environment protection industries, in a bid to optimize investment structures.