FDI into high-tech sector jumps 20% year-on-year

China’s foreign direct investment into high-tech industry surged 20.2 percent year-on-year in the first four months this year, official data showed on Thursday.

FDI into high-tech manufacturing field continued to maintain rapid growth in the period, with the figure climbing 79.5 percent year-on-year to 29.6 billion yuan ($4.65 billion), said Gao Feng, spokesperson of the Ministry of Commerce, at a regular news conference.Specifically, sectors such as medicine, electronics and telecom equipment manufacturing registered strong momentum in attracting foreign investment during the first four months. For instance, FDI into medical equipment, instrument and meter manufacturing sector increased 513.6 percent year-on-year, the ministry’s data showed. The number of newly established foreign companies climbed by 95.4 percent year-on-year to 19,002, while FDI into the Chinese mainland rose 0.1 percent to 286.78 billion yuan, the data showed.

Meanwhile, China’s non-financial outbound direct investment (ODI) grew 34.9 percent year-on-year in the first four months of the year, its sixth consecutive monthly increase. Data showed domestic investors made $35.58 billion of non-financial investment in 2,459 overseas enterprises in 144 countries and regions in the period. “(Between January and April) irrational outbound investments have been effectively reined in,” Gao said. In the period, China’s ODI mainly flowed into sectors including leasing, business services, mining, and manufacturing, showed the data. No new investments were made in property, sports and entertainment industries. China’s outbound direct investment, after peaking in 2016, witnessed a drastic reduction in 2017 amid the government’s efforts to curb irrational investment overseas that have brought potential risks to overall financial security.