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| China's FDI surges 109.78% in Jan |
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| 2008-02-24 | |
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Feb. 19, 2008 (China Knowledge) - China attracted up to US$11.2 billion foreign direct investment (FDI) in January, more than doubled that of the same period last year, according to the latest official figures. China's Ministry of Commerce (MOC) announced on Monday that the country's foreign direct investment in January rose 109.78% to US$11.2 billion, but the number of new foreign-funded firms set up in the same month jumped 13.41% from a year earlier to 2,918. Relatively cheap labor cost, together with the growing market demand, is the key driver of the higher FDI, said Li Huiyong, a Shenyin & Wanguo Securities Co analyst. And the amazing consumption need during the Spring Festival which lasted from Feb. 6 to Feb. 12 also helped push up the FDI, according to MOC. The higher FDI and CPI in the first month this year will lead to a longer tightening monetary policy by the Chinese government for preventing the economy from over-heating, analysts predicted. |
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