China’s FDI in US zooms 160% in 2009

China's FDI in US zooms 160% in 2009

Beijing: China milked the opportunity offered by the slowdown in US economy by pushing up its investment in that country by 160% in 2009. This is one reason why it has managed to grab the 5th rank in foreign direct investment.
    Experts say Beijing is now directing its attention towards low-cost European debt, which has been severely hit by the weakening economy. Year 2010 will see China hugely enhancing its investment in Europe, they said.
    Chinese investors also more than doubled their investment in European Union and ASEAN destinations. Fund pumping by Beijing happened in a year of economic slowdown when the levels of global FDI actually fell by 40%.
    Beijing hugely improved on its own record, investing $90 billion in overseas destinations in 2009 as compared to its FDI of $56 billion the previous year. It expects to raise the level of $100 billion this year, Shen Danyang, vice-director of the commerce ministry said.
    Besides higher levels of Chinese investments, the slowdown in FDI by several developed countries is what helped Beijing make the pole jump from the 12th to the 5th position in 2009.
    The official Chinese media Jinny Yan, Shanghai based economist of Standard Chartered Bank, predicted that the EU would continue to be a hotspot for China's outbound investment in the coming months because of the ongoing European debt woes. China contributed 5.1% of the global overseas direct investment of $1.1 trillion in 2009.