China FDI up 11.1% in August

Foreign direct investment (FDI) in China rose 11.1% year-on-year in August, following a 19.8% expansion in July, Bloomberg reported. According to a statement by the Ministry of Commerce released on its website Thursday, net FDI totaled US$8.45 billion last month. For the first eight months of 2011, inbound flows rose 17.7% to US$77.63 billion. Foreign businesses like Volkswagen (VOW.ETR) and Caterpillar (CAT.NYSE) are continuing to increase their China footprint in hopes of bolstering sales as the prospects for economic recovery in Western markets remain cloudy. Premier Wen Jiabao said on Wednesday that the country will continue opening to outside investors and encourage consumption. China’s economy grew 9.5% in the second quarter from a year earlier. “China remains the only bright spot amid the global financial turmoil,” Li Huiyong, an economist with Shanghai-based SWS Research said. “Investment returns in China remain high.”