China to promote renewable energy for heating

Foreign direct investment in China rose for the fourth consecutive month in May with European countries and the United States increasing their stakes, the Ministry of Commerce said yesterday.

Foreign investors channeled US$9.26 billion into China last month, up 0.29 percent from a year earlier, slightly slower than April's 0.4 percent rise.

Ministry spokesman Shen Danyang said China's inbound foreign investment had been relatively stable against a background of shrinking global investment.

"It is not easy for China to post positive foreign investment when some developing countries are losing foreign capital," Shen said at a media briefing. "It indicates China's economic competitiveness and foreign investors' confidence in the country."

In the first five months, investment from the 27-member EU rose 24.1 percent to US$3.4 billion, while capital from American firms was up 22.6 percent at US$1.6 billion.

China attracted a total of US$47.6 billion in foreign investment from January to May, an annual increase of 1.03 percent.

Shen expected growth of inbound foreign investment to be stable for the rest of the year as China continued to improve its business climate.

Earlier this month at the Fortune Global Forum in Chengdu, capital of Sichuan Province, Vice Premier Zhang Gaoli said foreign business should have confidence in China and grab opportunities offered by China's growth powered by the development of its inland areas.

China's western regions have seen strong growth in foreign investment, with an increase of 22.5 percent in the first five months, compared with the gain of 8.2 percent for central regions and the loss of 1.3 percent in eastern coastal cities.

China's outbound direct investment surged 20 percent to US$34.3 billion in the first five months, indicating the enthusiasm of Chinese investors to globalize their businesses, ministry data showed.