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Foreign Direct Investment in China Rises 11 Percent

Foreign direct investment in China picked up in May as companies seek to take advantage of low wages and rising demand in Asia's second-biggest economy.

Investment from abroad increased 11 percent from a year earlier to US$26 billion in the five months through May, after rising 10 percent in the first four months of this year.

Contractual investment also jumped 50 percent, to US$57 billion.

General Motors, Volkswagen, Ford and Toyota have announced plans in the past nine months to invest about $10 billion in China, the world's fastest-growing auto market.

ProMOS Technologies Inc., Taiwan's second-largest memory- chipmaker, last month announced plans to build a $900 million chip plant on the Chinese mainland, the world's second-largest market for personal computers.

The promise of growth in China is also attracting companies like Home Depot, the world's largest home-improvement retailer, and Tesco Plc, Britain's biggest grocery chain.

The Chinese Ministry of Commerce said as of end-May, China had attracted foreign investment totaling $527 billion and contracted foreign investment of $1 trillion.

(CRI June 14, 2004)

FDI in Mainland Increase Remarkably
More Work Needed on System Environment
Foreign Investment Shows Trend of "Moving Northward"
Days of Sizzling Growth Over in China?
Big FDI Inflows Pose No Threat
Overseas Direct Investment Surged in 1Q
Shanghai Foresees 10% Growth in FDI in 2004
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