FDI rose 44.5% in first seven months

Foreign domestic investment (FDI) in China overcame domestic slowdowns to rise by 44.5% in the first seven months of 2008, the South China Morning Post reported. FDI inflows reached US$8.3 billion in July, up from US$5.5 billion in the same period last year. From January to July, total FDI hit US$60.72 billion, against a total of US$74.8 billion for the full year 2007. Coming despite a slowing Chinese economy, the increase is a cause for concern for Beijing: economists believe the higher number reflects significant "hot money" inflows as foreign investors try to take advantage of a rising renminbi. On Tuesday, the renmimbi closed at 6.86 to the US dollar, up from 7.30 at the beginning of the year.