Arab Today, arab today us fdi into china declines
Last Updated : GMT 14:41:47
Arab Today, arab today
Arab Today, arab today

US FDI into China declines

Arab Today, arab today

Arab Today, arab today US FDI into China declines

Beijing - Xinhuanet

Direct investment from the United States to China continued to decline in October, partly as a result of the reshoring of manufacturing activity and the rising cost of labor in China, according to the Ministry of Commerce. However, the ministry said China\'s foreign direct investment (FDI) increased 9 percent year-on-year. Ministry spokesman Shen Danyang said the decline in US investment is closely connected with the country\'s economic slowdown and a preferential national policy of attracting investment to stimulate the economy. This prompted some reshoring - the process of returning jobs and manufacturing to the company\'s home country -of manufacturing activity, but Shen insisted that this will not become a general trend. According to the ministry, October FDI into China increased to $8.33 billion, a rise of 8.75 percent from a year earlier. That was an improvement on September\'s 7.88 percent, but lower than 11.11 percent in August. The ministry said US investment continued to decline in October, but it didn\'t provide data. However, between January and October, the figure fell by 18.13 percent year-on-year to $2.57 billion, 9 percentage points higher than during the first nine months of the year. Between January and October, investment from the 27 European Union (EU) nations increased by 1.05 percent to $5.51 billion. \"The grim economic situation in the US and EU is the major cause of the decline, or the slowing growth, of their investments in China. Faced with such gloomy prospects, many companies are unwilling to invest or to add investment,\" said Shen. In June, President Barack Obama pledged that the US would welcome direct investment from around the world to create jobs and boost the economy. Obama also emphasized that FDI would help the US to double its exports during the next five years. \"US enthusiasm for absorbing investment also provides encouragement for American businesses that own operations in China to swing back to the US and build factories there,\" said Shen. \"The reshoring negatively impacted China\'s performance in absorbing US investment in the high-end sector,\" he added. A recent report by Boston Consulting Group said 3 million new jobs will be created in the US by 2020 as Chinese labor costs rise and reshoring of manufacturing activity continues. Experts said the rising cost of labor in China is also pushing foreign investors to move their production and investment from China to neighboring countries. \"The reason behind the decrease (in US investment) is more likely related to foreign companies transferring production to other Asian nations, such as Vietnam and Indonesia, that enjoy lower labor costs,\" said Zhou Shijian, an expert on Sino-US economic relations at Tsinghua University in Beijing. Nike Inc, the world\'s leading maker of sportswear, said Vietnam has already replaced China as its largest shoe-manufacturing base. However, Shen pointed out that reshoring has only happened with a handful of companies and is unlikely to become a broader trend. \"I have no doubt about the future growth of US investment in China,\" he said. \"Despite veiled words (from some foreign companies) about China\'s investment environment, the country is still the world\'s most attractive investment destination. Companies from different parts of the world are investing, and will actively add investment, here,\" said Shen. Between January and October, China\'s FDI surged by 15.86 percent to $95 billion, almost equal to the total amount in 2010. Citing the rapid growth of the luxury market, the Hong Kong-based Emperor Group said recently that over the next five years it plans to annually open 10 to 20 new stores, selling jewelry and high-end watches, on the Chinese mainland, catering for all first- and some second-tier cities. Investment from Japan gained by as much as 65.5 percent year-on-year, and investment from 10 Asian nations increased by 20.67 percent year-on-year to $81.9 billion. After the March 11 earthquake, which caused the deceleration of the Japanese economy, Japanese companies \"realized investment activities in China would be very beneficial, so they either transferred production or increased their investment in the country\", said Shen. The first 10 months of the year saw China\'s outbound direct investment climb by 14.1 percent to $46.25 billion, 33.7 percent of which was realized through mergers and acquisitions.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us fdi into china declines Arab Today, arab today us fdi into china declines

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us fdi into china declines Arab Today, arab today us fdi into china declines

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday