China's FDI inflow rises 4.1% in 2016

BEIJING - Foreign direct investment (FDI) in the Chinese mainland maintained steady growth last year on the back of strong investment in the service industry.

FDI rose 4.1 percent year on year to reach 813 billion yuan ($118 billion) in 2016, the Ministry of Commerce (MOC) said in an online statement.

Growth slowed from the 6.4-percent gain in 2015. In December alone, the FDI inflow went up 5.7 percent.

Foreign investment in the service industry rose 8.3 percent year on year to 572 billion yuan and accounted for 70.3 percent of all FDI.

FDI in high-tech services was particularly strong, up 86.1 percent from a year earlier to reach 95.6 billion yuan.

The MOC attributed the steady momentum to government action such as easing restrictions in free trade zones (FTZs) and simplified procedures for investment entry.

Last year, FDI to FTZs in Shanghai, Guangdong, Tianjin and Fujian jumped 81.3 percent to 88 billion yuan.

FDI from the United States rose 52.6 percent, while that from the European Union went up 41.3 percent.

FDI from Japan edged up 1.7 percent in 2016, reversing two years of falls.

The number of newly-established foreign companies with investment of over $100 million exceeded 840, with businesses covering many emerging and high tech industries.

To attract more foreign investment, Chinese authorities are considering revising guidance for entry to the market, cutting the number of restrictive measures from 93 to 62.