China says December foreign investment doubles

(AP) — Foreign direct investment in China more than doubled in December from a year earlier as companies poured money into expanding amid a strengthening economic revival, the government reported Friday.

December's FDI was $12.1 billion and represented the fifth straight month of growth, the Ministry of Commerce reported. Total FDI for all of 2009 fell by 2.3 percent from the previous year to $90 billion, still a strong performance against the gloomy global backdrop.

Companies slashed spending in China as global demand plummeted in 2008 but investment began to rise again in August as economic growth rebounded with the help of a 4 trillion yuan ($586 billion) stimulus.

Growth accelerated to 8.9 percent in the third quarter after dipping to a low of 6.1 percent in the first three months of 2009. The government is forecasting full-year growth of 8.3 percent, by far the strongest of any major economy.

Foreign direct investment includes spending on factories, real estate and other assets but excludes investment in stocks and other financial instruments.

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On the Net:

Ministry of Commerce (in Chinese): www.mofcom.gov.cn