Foreign direct investment in China jumped nearly 20% last month. They were driven by giants’ projects such as McDonald’s plan of opening one restaurant per day.
“In the medium term, our growth model, driven by investment, will not decline.” In its Monday edition, the China Securities Journal, which is controlled by Beijing, was sure of the facts and announced that the foreign direct investment (FDI) in China was very robust in July.
Official figures released on Tuesday: FDI jumped 19.8% to $ 8.3 billion last month, bringing the volume to 69.2 billion for the first seven months of 2011 (18.6% over the same period in 2010).
A soft landing
Beijing wants to increase the contribution of consumption in economic growth, instead of largely depending on the investment. But foreign companies continue to rush to the former Middle Kingdom whose growth is expected to 9% this year. Signs of a slowdown are increasing.
According to a survey by Reuters, economists predict a scenario of “soft landing” – with growth reduced to 8.8% in 2012, while the target of the central government falls to 7%.
The giants of the industry and services
The Japanese automaker Nissan announced in late July it would invest $ 7.8 billion by 2015 to gain share of the largest car market world. And the world leader in fast food chain restaurants, McDonald’s intends to open one restaurant per day in China over the next three to four years.