Ministry of Commerce: The use of foreign capital in June fell sharply in manufacturing

According to reports, on the 17th, the Ministry of Commerce held a regular press conference to report on China's business operations from January to June 2012. Shen Danyang, spokesman of the Ministry of Commerce, said that the actual use of foreign capital in the first half of the year was 59.1 billion U.S. dollars, down 3% year-on-year; the actual use of foreign capital in June was 12 billion U.S. dollars, down 6.9% year-on-year. The impact of the manufacturing industry was 1-6 months, and 11,705 new foreign-invested enterprises were established in the non-financial sector. The actual use of foreign capital was 59.1 billion US dollars, down 13.1% and 3% respectively. Among them, 2444 foreign-invested enterprises were newly established in the month of June, down 16.3% year-on-year; the actual use of foreign investment was 12 billion US dollars, down 6.9% year-on-year. (Note: Data on banking, securities, and insurance are not included.) The characteristics of attracting foreign investment from January to June are as follows: First, the foreign industrial structure is further optimized. From January to June, the actual use of foreign investment in agriculture, forestry, animal husbandry and fishery was 890 million US dollars, down 14.4% year-on-year, accounting for 1.5% of the national total. The actual use of foreign capital in the manufacturing industry was US$27.02 billion, down 5.1% year-on-year, accounting for 45.7% of the national total. The actual use of foreign investment in the service industry was US$27.24 billion, a decrease of 2.9%, accounting for 46.1% of the national total in the same period. Among them, foreign investment in the real estate sector was effectively controlled, and the actual use of foreign investment decreased by 12.4%; in the financial industry, information transmission, computer services and software industry, the actual use of foreign investment in scientific research, technical services and geological exploration increased rapidly year-on-year, respectively. 73.3%, 62.6%, 17.8%. Excluding real estate, the actual use of foreign capital in the country from January to June was 46.8 billion U.S. dollars, down only 0.1% year-on-year, or basically flat. The actual use of foreign capital in other service sectors increased by 6.6% year-on-year. Second, the EU has increased its investment in China. From January to June, the EU-27 countries invested in 848 new enterprises in China, an increase of 1.0% year-on-year. The actual amount of foreign investment was US$3.52 billion, up 1.6% year-on-year (5.1% year-on-year decline), among which Germany and Switzerland The actual amount of foreign investment in the Netherlands and the Netherlands was US$900 million, US$720 million and US$580 million, respectively, up 31.2%, 213.1% and 67.3% respectively. Ten Asian countries/regions (Hong Kong, Macau, Taiwan Province, Japan, Philippines, Thailand, Malaysia, Singapore, Indonesia, South Korea) invested in 9,169 newly established enterprises in China, a year-on-year decrease of 15.5%. The actual amount of foreign investment was US$51.07 billion. The decline was 2.8%, of which Japan actually invested US$4.1 billion in China, a year-on-year increase of 16.9%. The United States invested 698 new companies in China, down 4.0% year-on-year. The actual amount of foreign investment was 1.63 billion US dollars, down 3.2% year-on-year. Third, the absorption of foreign capital in the central region has maintained rapid growth. From January to June, the actual use of foreign capital in the central region was US$4.82 billion, an increase of 8.5% year-on-year, accounting for 8.2% of the national total. The actual use of foreign capital in the eastern region was US$50.32 billion, down 2.9%, accounting for 85.2% of the national total. The actual use of foreign capital in the western region was 3.95 billion US dollars, down 15.1%, accounting for 6.7% of the national total. Affected by real estate regulation and control, Shen Danyang analyzed that the actual use of foreign capital in China declined in the first half of the year. From the external environment, it is because the recovery process of the world economy is slow, and there are many uncertainties and uncertainties, especially the European debt crisis has not been properly solved. The program has an impact on the level of global cross-border investment. According to the recent World Investment Report of UNCTAD, the multinational companies’ cash holdings reached the highest level and their recent investment will not be strong. In the first quarter of this year, global greenfield investment and cross-border M&A declined. UNCTAD also expects global FDI to grow only slightly in 2012 compared to 2011, and global investment flows are tightening. In addition, Shen Danyang said that from the analysis of domestic factors, the rising cost of production factors and the tight supply of land in China have also had a certain impact on foreign investment. Shen Danyang stressed that from the specific data, the actual use of foreign capital fell by 3% in the first half of the year, mainly due to the impact of real estate. This decline is the manifestation of the effects of macro-control policies and cannot be said to be bad. In other service sectors, China’s actual use of foreign capital increased by 6.6% in the first half of the year. From January to June, the actual use of foreign investment in the real estate sector fell by 12.4%, which was lower than the national average decline in other areas of foreign capital utilization. After deducting real estate, from January to June, the actual use of foreign capital in the country was 46.8 billion U.S. dollars, down only 0.1% year-on-year, basically flat. Shen Danyang pointed out that in 2010 and 2011, China's total use of foreign capital has a relatively large growth, the base is relatively high, and it is also an important factor in the year-on-year decline in the first half of this year. Under the different effects of these factors, the current absorption of foreign capital has declined.

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