FDI Growth Rate Slows On Tighter Economy

Foreign direct investments in China jumped 35.06 percent in the first 10 months to US$81.1 billion, but the growth rate slowed from a rise of 39.85 percent in the first three quarters, the Ministry of Commerce said yesterday.

The number of newly-established foreign-funded enterprises dropped 26.24 percent to 22,736 units during the period.

The contracted growth reflected the tighter global economy and stressed the importance of bolstering domestic demand, said Tang Yonggang, an analyst at Hongyuan Securities Co.

He said the FDI growth may continue to ease as a result of the global economic downturn but China will remain one of the world's most attractive places for investment because of its comparatively steady growth and the government's strong determination to sustain it.