Top Biz News

Costs pull down foreign investment

(Xinhua)
Updated: 2006-07-19 11:45

China's investment costs have been on the rise this year and slightly hurt the inflow of foreign direct investment over the first six months, spokesman Zheng Jingping of the National Bureau of Statistics said here on Tuesday.

Zheng attributed the rising costs to the stricter demands of the Chinese government on environmental protection, social security for workers and the use of land resources when answering questions at a press conference held by the Information Office of the State Council.

Official data showed that China's foreign direct investment has edged down 0.47 percent from January to June to 28.428 billion U.S. dollars.

Zheng said that the world's competition for foreign direct investment has intensified as many countries have doubled their efforts to attract foreign capital.

Another factor contributing to the decline, he said, was the "relatively abundant" private capital in China.

Given that the foreign direct investment in China has already hit 50 billion U.S. dollars and stayed at that level for many years, Zheng said it was difficult for the country to set a new record high.

He said that the year's prospect in attracting foreign capital would be as good as ever.

"A slight decline will help China to improve its balance of payments, make better use of foreign capital and ensure a more healthier economic development," Zheng said.