FDI into China up 19.8% in July

Foreign direct investment in China rose 19.8% year-on-year in July as economies in Europe and the US exhibited continuing weakness, the South China Morning Post reported. According to statistics from the Ministry of Commerce (MofCom), July FDI totaled US$8.3 billion, and inbound investment over the first seven months of the year totalled US$69.2 billion, up 18.6%. Investors are attracted by China’s relatively stable economic prospects, said Zhao Xijun, a professor at Remmin University’s International Finance Research Center. A June report by the International Monetary Fund predicted that the mainland economy would expand by over 9% this year, compared to growth of 2.5% in the US and 2% in Europe. Japanese carmaker Nissan (7201.TYO) said last month it plans to invest US$7.7 billion in the mainland by 2015. Carlos Ghosn, Nissan’s chief executive, said the company’s original forecasts for market growth in China were overly conservative. “Everyone is saying the China market is going down. But it’s a joke,” Ghosn said.