FOREIGN direct investment in China expanded 11.1 percent from a year earlier to US$8.45 billion in August, the Ministry of Commerce said today.

Last month's annual FDI growth however eased from 19.8 percent in July and compared with June's 2.83 percent growth. The overall value of foreign investment remained relatively steady and moved from July's US$8.29 billion and June's US$12.8 billion.

"When the global economic outlook is clouded by the eurozone debt crisis and a debt rating downgrade in the United States, many investors grow more cautious to make big decisions - it explains why China's foreign investment growth looks volatile," said Xu Weihong, an analyst at the Guodu Securities Co. He added that different bases also contributed to the growth rate's ups and downs.

Li Maoyu, an analyst at the Changjiang Securities Co, said uncertainties in the global economy might offer opportunities for China as well.

"While companies in Europe and the US may change their investment plans, firms elsewhere still have budgets and China should compete to become their top choice," Li said. "Also, when rich countries are ebbing, it's good time for Chinese investors to snap up bargains and go global."

Over the first eight months of the year, foreign investors pumped US$77.6 billion into China, up 17.7 percent from a year earlier. More than 18,000 foreign-invested companies were newly established in China during this period, an annual rise of 7.68 percent.

"The data indicated more projects were big-capital investments," Li said.

Foreign direct investment in China may exceed US$100 billion again this year, Assistant Commerce Minister Yu Jianhua said earlier, citing China's solid economic growth momentum that assures better returns fro investors.

Source:shanghaidaily