China’s FDI Attracts $63.3 Billion in First Six Months

China’s foreign direct investment inflows rose at an annual pace of 2.2 percent in the first six months and were up only modestly for June, indicating cautious investor optimism about the world’s second-largest economy.

The Commerce Ministry said on Tuesday that China attracted $63.3 billion in foreign direct investment in the first six months. June inflows rose 0.2 percent from a year earlier to $14.4 billion, its 16th straight month of gains.

FDI is an important gauge of the health of the external economy, to which China’s vast factory sector is oriented, but it is a small contributor to overall capital flows compared with exports, which were worth about $2 trillion in 2013.

FDI inflows in China have maintained steady growth every year since the country joined the World Trade Organization in 2001. Inflows reached a record high of $118 billion in 2013.

Data from the Chinese trade ministry showed FDI from Southeast Asian nations posted the biggest fall in the first six months, down 19.2 percent at $3.4 billion.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza