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Destination regions

East China has always been a major destination of foreign investment in China, while foreign investment is comparatively less in Central and West China.

In 2015, the number of foreign-invested enterprises in East China accounted for 88.41% of the total. The amount of foreign investment actually used in East China accounted for 78.09% of the total foreign investment absorbed by China.

Table 1.5 FDI in East. Central and West China in 2015

Region

Number of enterprises

Share (%)

Amount of investment actually used (USS million)

Share (%)

Total

26,584

100

1,355.77

100

East

23,502

88.41

1,058.68

78.09

Central

1,872

7.04

104.44

7.70

West

1,201

4.52

99.55

7.34

Relevant authorities

9

0.03

93.10

6.87

Source: Statistics of foreign investment of the Ministry of Commerce of China.

Notes

East China includes Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Hainan.

Central China includes Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan.

West China includes Inner Mongolia, Guangxi, Sichuan, Chongqing, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang and Tibet.

Data of relevant authorities include data of FDI absorbed by banking, securities and insurance industries.

The shares were 7.04% and 7.70% for Central China and 4.52% and 7.34% for West China.

There were 23,502 foreign-invested enterprises in East China in 2015, up 12.92% from 2014. The amount of foreign investment actually used in East China in 2015 was USS105.868 billion, up 7.51% from 2014. In Central China, the number of foreign-invested enterprises and the amount of investment both showed a downward trend, while West China saw an increase in the number of foreign-invested enterprises but a downward trend in the amount of foreign investment actually used. In Central China, the number of foreign-invested enterprises stood at 1,872, down 17.95% from 2014, and the amount of foreign investment actually used reached US$10.444 billion, a year-on-year decline of 3.99%. In West China, the number of foreign-invested enterprises amounted to 1,201, up 6.58% year-on-year, and the amount of foreign investment actually used was USS9.955 billion, down 8.28% from 2014 (see Table 1.5).

By the end of 2015, the number of foreign-invested enterprises and the amount of foreign investment actually used in East China accounted for 83.74% and 80.37% respectively of the accumulated number of foreign-invested enterprises and the amount of foreign investment actually used in China. The shares were 10.45% and 7.69% for Central China and 5.78% and 6.28% for West China (see Table 1.6).

4 Recipient industries

In 2015, the top three industries in terms of the number of foreign-invested enterprises in China were the wholesale and retail industry (9,156 foreign-invested enterprises, 34.44% of the total), the manufacturing industry (4.507 foreign-invested

Region

Number of enterprises

Share (%)

Amount of foreign investment actually used (US$100 million)

Share (%)

Total

836,595

100

17.409.06

100

East China

700,587

83.74

13,991.19

80.37

Central China

87,443

10.45

1,338.86

7.69

West China

48,374

5.78

1.093.14

6.28

Relevant authorities

191

0.02

985.87

5.66

Source: Statistics of foreign investment of the Ministry of Commerce of China.

Notes:

East China includes Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Hainan.

Central China includes Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei, Hunan.West China includes Inner Mongolia, Guangxi, Sichuan, Chongqing, Guizhou, Yunnan, Shaanxi, Gansu, Qmghai, Nmgxia, Xinjiang, Tibet.

Relevant authorities: Data about FDI absorbed by banking, securities and insurance industries.

enterprises, 16.95% of the total), and the leasing and business services industry (4,465 foreign-invested enterprises, 16.80% of the total).

In 2015, the top four industries in terms of the amount of foreign investment actually used in China were the manufacturing industry (US$39.543 billion, 29.17% of the total), the real estate industry (US$28.995 billion, 21.39% of the total), the financial industry (US$24.279 billion, 17.91% of the total) and the wholesale and retail industry (US$12.023 billion, 8.87% of the total) (see Table 1.7).

Table 1.7 FDI by industry in 2015

Industry

Number of enterprises

Share (%)

Amount of foreign investment actually used (USS)

Share (%)

Total

26,584

100

1,355.77

100

Agriculture, forestry, animal husbandry and fishery

609

2.29

15.34

1.13

Mining

34

0.13

2.43

0.18

Manufacturing

4,507

16.95

395.43

29.17

Power, heat, gas and water production and supply

264

0.99

22.50

1.66

Construction

176

0.66

15.59

1.15

Transportation, warehousing and postal services

449

1.69

41.86

3.09

Information transmission, software and information technology services

1,311

4.93

38.36

2.83

Industry

Number of enterprises

Share (%)

Amount of foreign investment actually used (USS)

Share (%)

Wholesale and retail sales

9.156

34.44

120.23

8.87

Accommodation and catering

611

2.30

4.34

0.32

Finance

2,012

7.57

242.79

17.91

Real estate

387

1.46

289.95

21.39

Leasing and business services

4,465

16.80

100.50

7.41

Scientific research and technical services

1,970

7.41

45.29

3.34

Water, environment and public facilities management

84

0.32

4.33

0.32

Life services, maintenance and other sendees

222

0.83

7.22

0.52

Education

38

0.14

0.29

0.02

Health, social security and social welfare

51

0.19

1.43

0.11

Culture, sports and entertainment

238

0.90

7.89

0.58

Source: Statistics of foreign investment of the Ministry of Commerce of China.

(1) Agriculture1

The absorption of foreign investment in China’s agriculture is of a small scale. In 2015, foreign investors invested in 609 agricultural enterprises in China, accounting for 2.29% of the total. The actual foreign investment in agriculture in the same year was US$1.534 billion, accounting for 1.13% of the total.

Since 2002, foreign investment in agriculture had been declining, and reached the lowest point in 2006. After that, it increased year by year and hit the record high in 2012. The amount of foreign investment actually used in 2014 declined slightly from 2013, and increased in 2015 to 1.13% of the national total FDI (see Figure 1.2). [1]

Amount and share of foreign investment actually used in agriculture

Figure 1.2 Amount and share of foreign investment actually used in agriculture.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

still about 40% lower than the peak level in 2004. In 2015, the amount of foreign investment actually used in the food processing industry continued to increase from 2014, accounting for 2.79% of the total investment in the manufacturing industry (see Figure 1.3).

Note: In 2015, foreign investors invested in 4,507 enterprises in the manufacturing industry, down 21.18% from 2014. The amount of foreign investment actually used in the manufacturing industry in 2015 was US$39,543 billion, down 0.99% year-on-year.

(3) Chemical manufacturing

In the chemical manufacturing industry,2 in 2015, foreign investors invested in 182 enterprises, down 22.22% from 2014, and the amount of foreign investment actually used was US$2,634 billion, down 17.14% year-on-year.

From 2002 to 2015, foreign investment projects in the chemical manufacturing industry totaled 11,413, with an accumulated foreign investment actually used of US$44,973 billion. Since 2008, foreign investment in the chemical manufacturing industry has been stable. The amount of foreign investment actually used in the chemical manufacturing industry accounted for 6.66% of the total in the manufacturing industry in 2015 (see Figure 1.4).

Amount and share of foreign investment actually used in the food processing industry

Figure 1.3 Amount and share of foreign investment actually used in the food processing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

The amount and share of foreign investment actually used in the chemical manufacturing industry

Figure 1.4 The amount and share of foreign investment actually used in the chemical manufacturing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

(4) General-purpose equipment manufacturing

In the general-purpose equipment manufacturing industry,3 in 2015, the amount of foreign investment actually used was USS2.849 billion, down 2.50% year-on-year, and the number of foreign-invested enterprises fell by 19.01% year-on-year to 443 in 2015.

From 2002 to 2015, in the general-purpose equipment manufacturing industry, foreign-invested enterprises totaled 16,433, and the amount of foreign investment actually used amounted to US$37,836 billion. From the dynamic point of view, in the past two years, the actual foreign investment amount in the general-purpose equipment manufacturing industry and its share in the total amount of foreign investment in the manufacturing industry were stable with a slight decrease. In 2015, the foreign investment used by the general-purpose equipment manufacturing industry accounted for 7.20% of the foreign investment used in the manufacturing industry (see Figure 1.5).

(5) Special-purpose equipment manufacturing

In the special-purpose equipment manufacturing industry,4 in 2015, foreign investment dropped 6.01% year-on-year, and the foreign investment actually used amounted to US$2,502 billion, up 8.69% year-on-year.

From 2002 to 2015, in the special-purpose equipment manufacturing industry, foreign-invested enterprises totaled 15,366, and the accumulated

Foreign investment actually used in general-equipment manufacturing industry and its share in the manufacturing industry

Figure 1.5 Foreign investment actually used in general-equipment manufacturing industry and its share in the manufacturing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

The amount of foreign investment actually used in tlie special-purpose equipment manufacturing industry and its share in the manufacturing industry

Figure 1.6 The amount of foreign investment actually used in tlie special-purpose equipment manufacturing industry and its share in the manufacturing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

amount of foreign investment actually used stood at US$34.373 billion. Since 2006, foreign-invested enterprises in the special-purpose equipment manufacturing industry has been decreasing year by year, but the amount of foreign investment actually used has increased continually, indicating that the investment in single projects in this industry is gradually expanding. Foreign investment in this industry in 2015 increased from a year earlier, accounting for 6.33% of the foreign investment used in the manufacturing industry (see Figure 1.6). 6 [2]

The amount of foreign capital actually used in the transportation equipment manufacturing industry and its share in the manufacturing industry

Figure 1.7 The amount of foreign capital actually used in the transportation equipment manufacturing industry and its share in the manufacturing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

(7) Manufacturing of communications equipment, computers and other electronic equipment

In 2015, foreign investors invested in 507 enterprises in the communications equipment, computers and other electronic equipment manufacturing industry, declining by 13.92% from 2014 to the lowest level since 2002. The amount of foreign investment actually used in this industry in 2015 amounted to US$6,855 billion, an increase of 11.51% year-on-year.

From 2002 to 2015, foreign-invested enterprises in this industry totaled 24,339, with a total amount of US$102,469 billion actually used. Since 2011, the number of foreign-invested enterprises and the amount of foreign investment actually used in the manufacturing of communication equipment, computers and other electronic equipment have declined, and the downward trend in the number of foreign-invested enterprises is even more significant. In 2015, however, the amount of foreign investment actually use increased from the previous year to US$6,855 billion, accounting for 17.34% of the foreign investment used in the manufacturing industiy (see Figure 1.8).

(8) Leasing and business services

The leasing and business services industry7 is a major industry for foreign investment. From 2002 to 2015, foreign-invested enterprises in leasing and business

l.S The amount of foreign investment actually used in the manufacturing of communications equipment, computers and other electronic equipment and its share in the manufacturing industry

Figure l.S The amount of foreign investment actually used in the manufacturing of communications equipment, computers and other electronic equipment and its share in the manufacturing industry.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

services totaled 36,896, and the accumulated amount of foreign investment actually used amounted to US$83.192 billion. The number of foreign-invested enterprises in this industry and its share in the total number of foreign-invested enterprises in the service sector increased significantly in 2002. From 2002 to 2014, the amount of foreign investment actually used in this industry also maintained steady growth, accounting for about 15% of the total amount of foreign investment actually used in the service sector on average.

In 2015, in the leasing and business sendees industry, foreign investors invested in 4.465 enterprises, up by 12.67% year-on-year, and the actual use of foreign investment amounted to US$10.05 billion, down by 19.51% year-on-year, accounting for 8.81% of the foreign investment actually used in the service sector8 (see Figure 1.9).

Amount of foreign investment actually used in the leasing and business services industries and its share in the service sector

Figure 1.9 Amount of foreign investment actually used in the leasing and business services industries and its share in the service sector.

accounting for 47.30% of the foreign-invested enterprises in the service sector, and the actual use of foreign investment amounted to US$12,023 billion, accounting for 10.54% of the total in the service sector.

From 2002 to 2015, foreign-invested enterprises in the wholesale and retail industry totaled 75,918, and the total amount of foreign investment actually used was US$75,597 billion. Since 2004, the shares of the wholesale and retail industry in terms of the number of foreign-invested enterprises and the amount of foreign investment actually used have increased steadily year by year, both reaching a record high in 2013. Both dropped in 2014 by 17.79% year-on-year and rose by 21.29% year-on-year in 2015 (see Figure 1.10).

Amount of foreign investment actually used in the wholesale and retail industries and its share in the service sector

Figure 1.10 Amount of foreign investment actually used in the wholesale and retail industries and its share in the service sector.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

Amount of foreign investment actually used in the transportation, warehousing and postal services industries and its share in the service sector

Figure 1.11 Amount of foreign investment actually used in the transportation, warehousing and postal services industries and its share in the service sector.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

(11) Health, social security and social welfare

There are few foreign investments in the health, social security and social welfare industry.11 From 2002 to 2015, foreign-invested enterprises in the health, social security and social welfare industry totaled 395, and the total foreign investment actually used in this industry stood at USS 1.052 billion. In 2015, foreign investors invested in 51 enterprises in the health, social security and social welfare industry, up by 131.82% from 2014. The amount of foreign investment actually used in this industry in 2015 was USS 143 million, up by 83.33% year-on-year. The foreign investment in this industry hit the record high of US$143 million since 2002 in 2015. It declined year by year from 2003 to 2007 and reached the lowest point of about US$100 million. The foreign investment in this industry increased continually from 2007 to 2010, decreased year by year from 2010 to 2012 and increased each year from 2013 to 2015. In 2015, the foreign investment used in this industry accounted for 0.12% of the total foreign investment used in the service sector of the year (see Figure 1.12).

(12) Finance

Finance12 is one of the important industries for foreign investment in China. In recent years, the financial sector has witnessed a significant increase in both the number of foreign-invested enterprises and the actual investment amount. From 2002 to 2015, foreign-invested enterprises in the financial sector totaled 4,379, using foreign investment of US$53,596 billion, with its share in the service sector showing a trend of long-term increase. From 2009 to 2011, the growth

Amount of foreign investment actually used in the health, social security and social welfare industries and its share in the service sector

Figure 1.12 Amount of foreign investment actually used in the health, social security and social welfare industries and its share in the service sector.

Source: Statistics of foreign investment of the Ministry of Commerce of China.

Amount of foreign investment actually used in the financial sector and its share in the service sector

Figure 1.13 Amount of foreign investment actually used in the financial sector and its share in the service sector.

rate stayed above 50%. In 2012, the number of foreign-invested enterprises in the financial sector rose by 80.8% year-on-year to 282, and the amount of foreign investment actually used rose by 11% year-on-year to USS2.12 billion.

From 2013 to 2015, the number of foreign-invested enteiprises and the amount of foreign investment actually used in the financial sector rose significantly year by year, from 555 foreign-invested enterprises and US$8,655 billion in 2013 to 986 foreign-invested enterprises and US$13,122 billion in 2014. In 2015, both the number of foreign-invested enterprises and the amount of foreign investment actually used in the financial sector increased rapidly, with the number of foreign-invested enterprises reaching 2,012, up by 104.06% year-on-year, and the amount of foreign investment actually used reaching US$24,279 billion, up by 85.03% year-on-year. In 2015, the foreign investment used in the financial sector accounted for 21.29% of the total in the service sector (see Figure 1.13).

  • [1] Food processing In the food processing industry, in 2015, foreign investors invested in 154 enterprises, up 1.99% year-on-year, and the amount of foreign investment actually used amounted to US$1.105 billion, up 9.19% from 2014. From 2002 to 2015, foreign investment projects in the food processing industry totaled 8,993, and the accumulated amount of foreign investment actually used amounted to US$17.047. Starting from 2011, foreign investment in the food processing industry declined year by year. The amount of foreign investment actually used in the food processing industry picked up in 2014, but it was
  • [2] Transportation equipment manufacturing In 2015, foreign investors invested in 322 enterprises in the transportation equipment manufacturing industry,5 down 10.80% year-on-year. The amount of foreign investment actually used in this industry amounted to US$3.708 billion in the same year, down 2.93% from 2014. From 2002 to 2015, in the transportation equipment manufacturing industry, foreign-invested enterprises totaled 10,816, and the accumulated amount of foreign investment actually used amounted to US$44.568. Since 2009, foreign-invested enterprises in the transportation equipment manufacturing industry has decreased, but the amount of foreign investment actually used has increased year by year, indicating that the investment scale in this industry has increased year by year in recent years. Foreign investment in this industry fell in 2015 from 2014, accounting for 9.38% of the foreign investment used in the manufacturing industry (see Figure 1.7).
 
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