US investment in China more than doubles in January despite trade war, hi-tech industry grows significantly
- Investment from the United States increased by 124.6 per cent despite overall growth in China’s foreign direct investment (FDI) slipping to 4.8 per cent to US$12.45 billion
- China’s hi-tech industry saw significant growth, with the use of foreign capital surging 40.9 per cent year-on-year, the Ministry of Commerce said
Investment into China from the United States more than doubled in January, with the hi-tech industry witnessing the most significant increase.
Overall growth in China’s foreign direct investment (FDI) slipped to 4.8 per cent from a year earlier to 84.18 billion yuan (US$12.45 billion) in January, according to figures released by the Ministry of Commerce on Thursday.
Investment from the United States increased by 124.6 per cent, while the Netherlands by 95.6 per cent, the United Kingdom by 13.7 per cent and Hong Kong by 6.5 per cent also increased.
China’s hi-tech industry saw significant growth, with the use of foreign capital surging 40.9 per cent year-on-year, the ministry said.
Information services, research and development, design services, and scientific and technological achievements transformation services increased by 168.6 per cent, 35.8 per cent and 62.9 per cent respectively.
But Frances Cheung, head of macro strategy Asia at Westpac, warned market observers should wait until first quarter FDI is released in mid-April to obtain a clearer reading of underlying trends because monthly figures can be volatile due to “one-off, big ticket items”.