A Long-Term Decline Ahead

In the past three decades,China,as an emerging market,has attracted the great inflow of foreign investments.Foreign Direct Investment (FDI) has also become an important tool promoting China's economic growth.Nevertheless,at present,FDI in China is continuously decreasing,which,on the one hand,indicates that the overseas investment capacity of foreign investors is declining,and on the other hand,shows the Chinese market is becoming less attractive for foreign investments.As a matter of fact,both the external and internal environment are posing a severe challenge on the FDI situation in China.     

China Becomes World''''s Third Largest FDI Recipient

China has become the world's third largest foreign direct investment (FDI) recipient, according to the World Investment Report 2006. According to the report released by the United Nations Conference on Trade and Development (UNCTAD) on October 16, China is the largest FDI destination of all developing countries, receiving US$72.4 billion of FDI in 2005.     

FDI Drops for Six Months

The FDI statistics issued by the Ministry of Commerce on May 15 show that in April he paid-in foreign investment in China accounted for 8.401 billion USD,down by 0.74％ year-on-year.So far the FDI index has suffered a negative growth for 6 consecutive months.Experts say that the gloomy economies of the European countries and the U.S.,increasing costs and slower economic growth of China,and also competitions from other developing counties will exert continuing pressures on China's FDI condition.It will be a long trend that the inflow of investment will slow down.     

Survey on Chinese Enterprises' Outbound Investment and Operation (I)

The year of 2011 marked the beginning of China s 12th Five-Year Plan period,and also the 20th year of the country's implementation of its “going global” strategy.In the past decade,Chinese enterprises' outbound investment has witnessed the gradual transition from rapid growth to steady growth and from quantity based growth to qualitative based improvement.In 2011,against the backdrop of increasing turmoil in the global political and economic environment,the ongoing deepening of the European debt crisis,and an increasing complex international investment climate,Chinese enterprises' outbound investment maintained a stable growth momentum.Domestic investors made non-financial outbound direct investment in 3391 overseas enterprises in 132 countries and regions around the world,and the cumulative direct investment amounted to US$60.07 billion,up 1.8％ Y/Y.Going into 2012,domestic enterprises are actively more involved in overseas investment.In January and February,domestic investors made US$7.435 billion of non-financial outbound direct investment in 706 overseas in 97 countries and regions around the world,up 59.9％ y/y.     

A Helping Hand in the ChineseBusiness Maze

Many foreign business people have likened doing businessin China to a labyrinth of dead-ends and booby-traps. Unaf-fected by the global economic slowdown however and withSARS a mere blip in the either wise unaffected growth curve,Chin‘s output continues to expand at a pace other countriescan only dream of. In 2002, China attracted $53 billion inforeign direct investment (FDI), a 12% increase over 2001.     

Global Entrepreneur Summit 2011 Wrapped Up in Beijing

The year 2011 turns out to be a tough year for global economic recovery with 2012 facing the alternative challenge of political and economic cycle.Developed countries are struggling to deal with sovereign debt crisis.At the same time,emerging countries are trying to find their independent development path.How to achieve rebalance between developed countries and emerging markets has become a core issue that secures stable global economic growth.     

Mexico： A Golden Opportunity

Mexico is the second largest producer of silver in the world and is ranked ,among the top 12 countries in terms of production of eighteen types of minerals. It has become one of the most internationally competitive countries for mining at the same time as the sector has taken on a key role in the country＇s own economic growth. According to the report from Behre Dolbear published in 2010, Mexico was the world＇s fourth-best investment destination for mining among a 25-country-list and in first place regarding the fiscal regime. Meanwhile,     

Prevailing Protectionism Challenge to International Mining

An overall adjustment of global industries is going on and the global resource allocation layout is changing.Developed countries attempt to maintain the existing resource allocation layout while emerging countries such as China and India are getting involved in global resource allocation and are playing an increasingly active role.The reporter from China's Foreign Trade magazine had an interview with relevant offcials,experts and professionals in mining investment on such issues as the current characteristics of international mining market,the situation of international mining market in the year 2012 and the foreign investment direction of Chinese mining,and analyzed the above issues.     

Conclusion of Survey on Current Conditions and Intention of Outbound Investment by Chinese Enterprises

Despite the challenging economic environment, Chinese overseas investment continued to grow in 2009.According to the data published by the Ministry of Commerce,outbound foreign direct investment (FDI) by Chinese enterprises amounted to 43.3 billion in 2009, a year-onyear increase of 6.5%. This growth occurred against the backdrop of a decline in global foreign direct investment by 30% ～40% compared to 2008.     

Chinese Overseas investment Calls for Perfection of Overseas Investment Insurance

Overseas investment insurance is a non-profitable insur- ance provided by the government of a state for her enterprises which have invested in the developing countries or areas against political risks.Such a gov- ernmental guarantee system was first established in the United States in the middle of last century.Nowadays most developed countries and some of the developing countries have followed American practices and set up similar systems to encourage their enterprises to make investment in developing areas which are often regarded to be more easily to have political risks.In recent     

Making Digital Platforms Work for Asia and the Pacific

The coronavirus(COVID-19)pandemic has weighed heavily on health and economic systems worldwide;it has also severely disrupted Asia’s cross-border trade and economic activities,and exposed the vulnerabilities of global supply chains.Despite this,Asia still immensely benefited from open trade and investment,with the region’s export-driven growth strategy and attractiveness to foreign direct investment(FDI)lifting millions out of poverty over the past half a century.The ongoing pandemic has also highlighted the benefits of rapid technological progress,digitalization,and increasing the services trade to bringing the global economy even closer together and providing new forms of global linkages.Intensifying these structural changes may be the basis of robust,resilient,and sustainable economic recovery.Moreover,the crisis created an opportunity for greater global and regional cooperation in order to contain and suppress COVID-19,strengthened global supply chains for essential commodities(including food,medical supplies,and vaccines),and made the world safer from natural hazards and pandemics by investing in projects with high social impact and economic returns.     

KEY WORDS for Foreign Investment in China

FDI(Foreign Direct Investment),a component of a country's national financial accounts,is investment of foreign assets into domestic structures,equipment,and organizations. It does not include foreign invest- ment into the stock markets,concession and subcontract.FDI is thought to be more useful to a country than invest- ments in the equity of its companies be- cause equity investments are potentially"hot money"which can leave at the first sign of trouble,whereas FDI is durable and generally useful whether things go well or badly. In recent years,given rapid growth and change in global invest-     

Service Industry Promotes TradeWith Foreign Countries

In the first half of the year, the R0K, Australia and Canada with high growth rates in bilateral trade with ChinaThe statistics on foreign trade in the first half of the year issued by the General Administration of Customs showed that the ROK, Australia and Canada became the countries with highest growth rates in their bilateral trades with our country, and the growth rate was 55.4%, 50.5% and 45.0% respectively. Such high growth rates are due to the great contributions of the service trade. This indicates that the new trade-growth mode has become a challenge to the traditional ode, which relies on the low-profit cargo-trading growth to promote the trade development.In recent years, the ROK, Australia and Canada:have become the important service-trading partners of our country; in service trade fields, such as labor service, immigration, overseas study, tourism and consultation, etc., the high growth of the bilateral trade volume has greatly promoted the growth of Cargo trades.     

Chinese Investment BuoysAfrica's Economy

According to Xinhua News Agency,athough Africa is a diverse continent,containing a variety of countries and cultures,the representatives of African countries do have one thing in common:their desire to attract Chinese investment.“We look forward to Chinese enterprises'investments.Chinese investment helps us to fund the construction of transportation and medical infrastructure,” Bernadette Artivor,executive director of the Namibia Investment Center,said on September 8.Artivor made the remark at the High-Level Symposium for China-Africa Investment and Cooperation,an event held as part of the 15th China International Fair for Investment and Trade (CIFIT) which opened in southeast Chinas coastal city of Xiamen.     

China Expecting a Long-Term Slowdown of FDI Inflows

In recent years,the development of FDI in China has demonstrated two major characteristics:the pace is slowing down,even continuously showed negative growth;disguised foreign investments account for an excessively high proportion.Investors from countries and regions in Asia,especially Hong Kong and Macau and some dutyfree islands,have dominated the FDI in China for a long time.In the last two months,investing capital flowing out of these areas added up to US$15.379 billion,accounting for 88.67％ of the total amount of FDI in this period.However,a large proportion of FDI from these areas are “disguised FDI”,which comes from domestic sales of commodities originally produced for exports.It actually has greatly reduced the international technology spillover effect of FDI and affected the overall quality of FDI entering China.As a matter of fact,Chinas economic development and continuous growth of its total factor productivity,since the reform and opening up,are the result of productivity liberation to some extent.But mainly,they rely on the technology and management spillover brought by FDI.     

More Going Out than Coming in

China's FDI suffered a downturn again this March,with actual use of foreign capital of US$11.757 billion,6.1％ decrease year on year.It was the fifth continuous month that China suffered a fall in absorbing foreign investment.In the first quarter of 2012,China's FDI dropped by 2.8％ to US$29.48 billion,according to the Ministry of Commerce at its regular press conference on April 17. However,we found another interesting comparison figure,in the same first quarter of this year China's overseas investment witnessed an impressive growth of 94.5％ and reached US$16.55 billion.     

What＇s Behind the Hype of Decoupling？

The meaning of decoupling “You either believe in decoupling or globalization—but not both”, said Stephen Roach, an economist at Morgan Stanley. AND “you can have both decou-pling and globalization at the same time”, said an article in The Economist. How diffusing about the meaning of decoupling especially in the context of international finance crisis in which the developed countries can＇t hold the world together while the developing riecountries play a more increasing role in the arena of international affairs! We can get a clearer look if we go back to see what happened in the past thirty years. The global economic landscape has shifted dramatically since the mid-1980s. There are two phenomena which attracted our attention. First, with the cost-downing and demand-increasing, there has been a rapid increase in interna-tional trade and financial linkages across national countries. Second, emerging economies have increasingly become major players in the world and they now account for about a quarter of world economic output every year and a more major driver of global growth due to industrial economies＇ slowing economic development.     

Latin America: Taking the Helm

The eyes of the world are locked on Europe these days.This is understandable.After all,the storm in the euro area casts a long shadow over the entire global economy. But the IMF has 187 members,and my job is to serve each and every one of them as effectively as possible.Like so many in the region,Latin America countries have done remarkably well over the past few years.They have harvested the fruits of strong fundamentals,sound policy frameworks,and prudent macroeconomic policies and are now enjoying sustained growth with reduced vul-nerabilities,an enviable sweet spot.     

Developing Chinese Heavy Truck Industry

Strong economic recovery = Great opportunity in heavy trucks
Based on the four trillion investment expansionary fiscal policy and the loose monetary policy, China＇s economy is stimulated. Meanwhile, the CITIC Securities Research Dept. estimated that the economic growth will be better than expected in 2009 and 2010. Macro-economic expectations continue to improve and the fix-asset investment growth rate hit a new high level of the recent five years. Therefore, the heavy truck engineering vehicle and engineering machinery car market can benefit from them. From January to June this year, the national investment in new projects and the total investment of the construction project have respectively increased by 87% and 36%. Excavators, truck cranes, bulldozers, loaders and other Construction Machinery varieties have a significant rise in sales.     

Global Report on International Trade and Investment Risk Indexes of 100 Countries [ITIRI 2006]

After reaching a peak in 2004,now the world economic growth is turning to a downward process of 8-year-round economic cycle in which the rate of growth appears to slow down distinctly. Hence the global international trade and investment risks will also generate new changes.