Foreign Investment in China Quickens

China's foreign direct investment (FDI) in August continued its double-digit growth, rising 11 percent from a year earlier to $8.4 billion and underscoring foreign companies' interest in the world's second largest economy.

From January to August, the country's FDI surged 17.7 percent to $77.63 billion.

Coca-Cola, the world's largest soft drinks company, announced in August it would add another $4 billion in investments over the next three years in China starting from 2012. That is in addition to the $3 billion announced in 2009.

Minister of Commerce Chen Deming said recently that China's foreign investment environment will continue to remain competitive in the long term thanks to good infrastructure and labor resources, despite the nation facing new challenges like higher labor costs.

Chen said China will further improve the investment environment, including providing equal treatment for foreign companies with their local counterparts, coming up with innovative ways of attracting FDI and widening the area for FDI.

In April 2010 the State Council issued new FDI development guidelines, which encouraged foreign companies to invest in China through mergers and acquisitions.

Three rules linking government procurement to indigenous innovation by domestic firms were scrapped in July this year, giving foreign firms better access to the domestic market.

The United Nations Conference on Trade and Development said in July that China is and will continue to be the most attractive market for foreign investors in the next two years.

Source: China Daily