In January, China accumulated around $13.9 billion in FDI. This value was up by 29.4 percent from a year earlier. The value is the highest in nearly four years said Commerce Ministry earlier on Monday.
However, analysts cautioned the users about getting into too many details regarding the economic indicators for the month of January. This had a strong seasonal distortion because of the Lunar New Year holidays.
In January the FDI increased by 4.5 percent from December.
The China FDI also increased by 1.7 percent in 2014. This was the slowest growth seen since 2012 in this region. Many Chinese firms plough enough money into the overseas assets in the hope that it will overtake inbound investment.
The foreign direct investment matters the most in the world economy. It is a strong indicator of the direction where the capital is flowing within that particular country.
China’s ministry’s spokesman said that China’s foreign direct investment is anticipated to be stable for 2015.
China's manufacturing is slowing down. The region should overlook the deflationary risks because it has not yet sunk into the cycle. According to the data, investors were flocking to the services industry.
The services sector FDI was up by $9.2 billion in January. This value was up 45.1 percent and accounted for 66 percent of total FDI.
China’s ODI has hit $10.2 billion in January. This value was up 40.6 percent from the previous year, added the ministry.
FDI drew around $119.6 billion while ODI surged to 14.1 percent to reach $102.9 billion.
Chinese firms are encouraged to become competitive internationally and help slow down the build-up capacity of foreign exchange reserves.