Economy Apr 16

Foreign investment in China down 10.8% in first quarter

FDI totalled 216.2 billion yuan ($30.5 billion) in the first quarter, Ministry of Commerce said

by Nadeem Xu
Foreign investment in China down 10.8% in first quarter
Foreign investment in China fell in the first quarter but was up in high-tech services, the Commerce Ministry said. Photo: AFP

(ATF) Foreign direct investment (FDI) into the Chinese mainland fell 10.8 % year-on-year in the first three months of 2020, hit by the novel coronavirus outbreak, according to a report on the Ministry of Commerce website on Tuesday.

FDI totalled 216.19 billion yuan (about US$31.2 billion) in the first quarter this year, the Ministry said.

A breakdown of the data showed FDI decreased 14.1 % year-on-year in March but the decline was 11.5 percentage points narrower than that in February.

Foreign investment in high-tech services surged 15.5% year-on- year in the first three months, and accounted for 29.9% in the service sector.

China will seek further opening-up and an upgrade of foreign trade and investment to offset the economic shock brought about by the Covid-19 pandemic, a Ministry official said.

To facilitate foreign investment, China will shorten the negative list on foreign investment, further open up the service sector and improve China’s business environment.

Meanwhile, companies in the processing trade will not have to pay interest on tax deferred for domestic sales in 2020, the Ministry of Finance said in a statement on Wednesday.

 The move, effective from April 16 till December 31, seeks to stabilize the processing trade and relieve the burden on enterprises, the statement said.