China's FDI up 44.54% in Jan-Jul

Foreign direct investment (FDI) in China rose 44.54% year-on-year to US$60.724 billion in the first seven months this year, said the Ministry of Commerce (MOC) on Tuesday.

In the corresponding period, number of new approvals for foreign-funded firms declined 22.15% from the same period last year to 16,891.

In July alone, number of newly-approved foreign-funded firms dropped 21.58% from a year earlier to 2,347 and actual use of FDI rose 65.33% year-on-year to US$8.336 billion.

Overseas investors have started investing in high-tech and service industries, compared with earlier tendency to invest mostly in manufacturing sectors, according to some analysts.

The increase in FDI and the decrease in the number of overseas-funded businesses firms suggest the average FDI used for single project had increased significantly.

However, the high FDI may also indicate substantial hot money inflows, and the government will continue to be vigilant on it.