China’s foreign direct investment has risen by 18.4% year-on-year to $60.89 billion in the first six months from a year earlier as companies like Nestle SA and Ford Motor Co boosted their presence in the fastest growing major economy, Yao Jian, spokesman for the ministry of commerce said.
In June alone, China's FDI rose 2.83% from one year earlier to $12.86 billion, Bloomberg reported.
The growth rate had fallen for three consecutive months, and the June figure was 10.3 percentage points lower than that of May.
China approved 2,919 foreign-invested companies to start business operations in June, up 6.57% from the same month last year.
A total of 13,462 foreign firms received approvals to start operations in the first half, up 8.77% year-on-year.
China is expected to expand three times faster than U.S. this year, giving its 1.3 billion people more money to spend on snacks, cars and household goods.
“China is still an attractive destination for investors and will remain so for many years to come,” Fang Sihai, Beijing-based chief economist at Hongyuan Securities Co said.
According to commerce ministry, foreign investment exceeded $100 billion last year and sound growth is expected again this year.
According to forecasts from Barclays Capital and Mizuho Securities Ltd, the growth for the year will likely be more than 9%.
The expansion may be as fast as 9.5%, said, Yu Bin, director of the macroeconomic research department at the State Council’s Development Research Center.
Growth in China is easing as higher interest rates and curbs on lending damp the supply of credit that’s fueled inflation and property speculation.