China uses US$420 bn of FDI in 5 years

China uses US$420 bn of FDI in 5 years

5年累计吸收外商直接投资4200亿美元

Statistics of the Ministry of Commerce (MOC)show that in the “11 th Five-Year Program” period(2006-2010)，China accumulatively absorbed foreign direct investment (FDI) totaling US$420 billion,about 1.5 times the figure in 2001-2005，has jumped from the fourth place to the second place in the world in terms of FDI used，and remained in the top place among developing countries for 18 years running.

Foreign-invested enterprises have become one of the important creators of social wealth and employment in China:they account for about 28%of China's total industrial output value created,22%of the country's total tax revenue and 55%of total import and export (they account for about 80%of China's total high-tech products export)，and have offered direct employment to about 45 million persons.

The proportion of foreign investment in the primary and tertiary industry in China has increased from 30%at the end of 2005 to 48%at present,and foreign investment in modern agriculture,commercial and trade service and people's livelihood has increased obvioulsy.In manufacturing sector,foreign investment in such technology－and capital-intensive industries as electronic information,integrated circuit,household electrical appliances,and auto making has kept growing；that in new energy,new materials,biomedicine,and energy saving and environmental protection has reached certain scale,and China has become the second largest offshore service outsourcing destination market in the world.

Up to present,multinational companies have launched over 1,400 R&D centers in China,nearly doubling the figure at the end of 2005.Of foreignfunded R&D centers,nearly 50%engage in study of leading technologies,exceeding the rate engaging in market study,which is 40%；over 60%of these centers regard the global market as their major service target.And the focus of R&D work of foreign investment in China has gradually shifted from simple market application service to basic research and products development.

The proportion of foreign investment in Central and West China in the total foreign investment in China has increased from 11%at the end of 2005 to about 14%at present.There are 43 State-class economic and technological development zones in Central and West China,of which 22 are upgraded from provincial ones.The launch of trade and investment fair in Central China has filled up the blank of regional investment promotion platform in central China,and it has attracted nearly 30,000 overseas investors in five years,contractually let in US$42.6 billion of foreign capital.

In the five years,China has revised and promulgated regulations on foreign M&A and establishment of partnership enterprises,and has kept reforming foreign investment examination and approval system.MOC alone abolished and delegated 26 examination and approval items in 2009,and only about 0.2%of newly esta b lished foreign-invested enterprises need to be reported to MOC for examination and approval at present.Meanwhile,under the premise of further opening up,China has once again revised the “Industrial Guide to Foreign Investment”.