China Business Blogs

Foreign Direct Investment on the Rise

There were some various gloomy prophecies made about the Chinese economy at the beginning of the year 2015. The Chinese economy seemed to suffer from the global economic downturn and the problematic Euro zone. Nevertheless, these forecasts may have been a little premature.
Despite the bad prognosis, the Chinese Foreign Direct Investment index is still rising and even reached new heights within the first three months of 2015. The FDI within mainland China jumped an enormous 11.3 Percent from January to March. This means, that the year of the goat blessed the Chinese economy with 34.88 billion U.S. dollar FDI within the first quarter of 2015. Therefore it even exceeded the annual growth rate predicted for 2014 of 1.7 percent by far.

File photo of a woman walking at the Bund in front of the financial district of Pudong in Shanghai

Accompanying the huge FDI spike is the number of newly registered foreign companies within mainland China. The total amount of newly registered companies within the first three months of 2015 increased by 22.4 percent.

Most of investment came from Hong Kong, Taiwan, Korea, Japan, Singapore, the United States, France, Britain, Germany and Saudi Arabia.

Even though the overall economy may slow down while China is in transition to becoming a developed country, China continues to be one of the most attractive places for investment and remains the driving motor of the world economy.

People look at an electronic board at a brokerage house in Shanghai