The S&F law blog

US investment in China drops
June 9, 2011, 2:09 pm
Filed under: Uncategorized

According to the Ministry of Commerce, US investment in China dropped to 28%. Foreign direct investment (FDI), on the other hand, has maintained a double-digit growth rate from January to April. During this same time period, US investment decreased to 1.03 billion U.S. dollars; the number of US firms building headquarters or overseas branches in China fell by 3.85% to 475 firms.

Although the decline in US investments is sharp, economists have voiced optimist towards the situation, believing that the decline is temporary and that the Chinese economy will provide ample investment opportunities for the US in the long term.

Other nations, however, are not following suit. Investments from the EU rose by 23.42% to 2.64 billion U.S. dollars. Investments from Asia Pacific nations–including Japan, South Korea, and Singapore–grew by an even greater percentage at 31.23%.

The lessening US investments have been attributed to the US’s recent economic difficulties and declined manufacturing rate, but also to rising labor costs in China.

Source: xinhuanet


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