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(DOC) Emerging

By Cindy Sanders,2014-07-22 02:56
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Emerging

    Emerging

;InvestmentfromEUdropsinSep

    ;;

    ;t

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    ;EuinvestmentinChinauptoOctoberdropped.due ;mainlytoamassivecutinSeptembercausedbytheeuro

    ;zonedebtcrisis,theMinistryofCommercesaidonOcto

    ;ber19,ChinaDailyreported.

    ;Butocialsandexpertsdismissedanysuggestionthat ;globalconfidenceintheworld‟ssecond—largesteconomy

    ;hasbeenshaken.

    ;Investmentfromthe27-nationblocdropped1.8per- ;centyear-onyeartoUS$4.18billionfortheJanuarySep

    ;temberperiod.However,fortheeightmonthstoSeptem

    ;berithadactuallysurged3.28percenttoUS$4.56billion. ;ThekeymonthwasSeptember,whentheEUcutin

    ;vestmentinChinaUS$378million,thefirsttimeithad ;takensuchastepthisyear.”This(theinvestmentcut)is

;connectedtotheongoingdebtcrisis,”ShenDanyang,min—

    ;istryspokesman,said.

    ;“Butweneedn‟tworrytoomuchaboutit,giventhat

    ;theEuropeanUnion‟sinvestment,bothoverseasanddo—

    ;mestic,hasbeendeclining,”headded.

    ;“China‟sprospectsfor

    ;ment(FDI)isfairlygood”

    ;vestment,Shensaid.

    ;absorbingforeigndirectinvest-

    ;despitethedropintheEUin

    ;AmidtheEuropeandebtcrisis,internationalratings ;agencyMoody‟scutSpain‟screditratingbytwonotcheson

    ;Wednesday,afteritwarnedFrancethatitstriple-Arating ;wasatrisk.

    ;„„AsthedebtcrisisisexpectedtocontinueinEurope,

    ;someEuropeancompaniesareprobablyreducinginvest- ;mentinChina,”saidXuSitao.Chinadirectorofgloba1

    ;forecastingwiththeEconomistIntelligenceUnit. ;But”it‟shardtodefineatrendfromiustonemonth”.

    ;ngZhiledirectoroftheresearchcenterontrans

    ;nationalcorporationsundertheministry,alsosaidthatthe ;appealoftheChinesemarketremainsstrongtoforeign

;investors.

    ;Anindicationofthisistheannouncementlastweek ;byUSfashionretailerGapthatitwillexpanditsstoresin ;Chinato45in2012from15.

    ;“ChinaisoneoftheplacesthatUSretailersarelook-

    ;ingforgrowth,”saidDavidFrench,seniorvice—president

    ;ofgovernmentrelationsattheNationalRetailicederation, ;whichrepresents2,500USretailers.

    ;FromJanuarytoSeptember.FDIinChinasurged ;16.6percenttoUS$86.68billion;thoughthepaceof ;growthslowed.

    ;Septembersawajumpof7.9percentbutthiswas ;downmarkedlyfromJuly‟s19.8percent.

    ;USinvestmentinChinacontinuedtodecline.down ;9.88percentyear-onyeartoUS$1.88billionfromJanuary ;toSeptember.

    ;USAmbassadortoChinaGaryLockesaidthatChi

    ;na‟sbusinessenvironmentwasleadingto‟‟growingfrustra—

    ;tion”amongforeignbusinesses.

    ;BuXu,fromtheintelligenceunit.disagreed. ;“BecauseofthesluggishUSeconomy,1aborcostsin

    ;theUShavedropped,attractingsomeAmericancompa

;niestoreturnfromChina,”Xusaid.

    ;Incontrast,investmentfrom10Asiannationsand ;regionsthatincludeHongKong,+Japan,SouthKoreaand ;Singapore,rose23.66percenttoUS$65.32billioninthe ;firstninemonths.Japan‟sinvestmentinChinasurgedmore

    ;than60percentfromJanuarytoSeptember,Shensaid. ;FDIinChinahasbeenontheriseforthreedecades ;andhitrecordhighslastyearwithinvestmentworth ;US$105.74billion.

    ;ChinahasbeenthemostattractiveFDIdestination ;amongthedevelopingnationsfor19consecutiveyearsup ;toandincluding2010.

    ;Meanwhile,China‟soutbounddirectinvestment

    ;(ODI)soared12.5percentyear-onyeartoUS$40.75bil

    ;lioninthefirstninemonthsofthisyear.

    ;o

    ;LeadingemergingeconomiessuchasChinahavere

    ;portedlyagreedtohelptheEuropeanUnionincreaseitsbail

    ;outfundthroughtheInternationa1MonetaryFund(IMF), ;saidareliablesourceclosetoEUdecisionmakerstoChina

    ;Daily.

    ;Ifthishappens,Chinaandotheremergingeconomies

    ;mayobtainmoreinfluenceintheglobalfinancialsystem ;aheadofG20summitscheduledforNov3to4inCannes, ;France.

    ;VthintheIMFanincreasedcontributionmeansmore ;votingrights.Emergingeconomieshavelongcallingfora ;biggersayintheorganization,whichhasbeendominatedby ;developedeconomiesandinwhichtheUnitedStateshasa ;veto.

    ;Meanwhile,ChineseForeignMinisterYangJiechi ;pledgedtosupporttheEU‟Seffortstotacklethesovereign

    ;debtcrisisandsaidhehopedtheEUwouldtaketangible ;measurestorestoremarketconfidence,whenhemetvisiting ;EUforeignaffairschiefCatherineAshtoninBe!jing. ;ThesourcesaidtheEUmaywritetheagreementinto ;thefinaldocumentatthesummitofEuropeanleaders,which ;willconveneonOctober26.

    ;TheleadersalreadyachievedconsensusonOctober23 ;ontheframeworkofthecomprehensivebailoutstrategy, ;whichincludesiobcreation,anincreasedbailoutpackage,the ;Greekbailout,bankrecapitalization,crisiscontagionpreven- ;tionandeconomicgovernance.

    ;TheframeworkgivestheEUmuchroomformaneuver

    ;tomobilizeresourcesfromitsexternalpartnerstoresolvethe ;debtcrisis.

    ;AndChinaisalsokeenforthemtoopentheirdoors ;widertofacilitatethecountry‟sdirectinvestment,similarto

    ;China‟slong-timereadinesstoattractEuropeaninvestment. ;s

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