Geneva July 5, United Nations Conference on Trade and Development (OECD) (UNTAD) released the World Investment Report 2012 "(hereinafter referred to as the" Report ") pointed out that this year, global FDI inflows declined, annual FDI growth rate is expected to place the slow. UNCTAD World Investment Prospects annual survey shows that the Chinese economy is still the most attractive for FDI.
 
But the report also pointed out that the current world economic difficulties and uncertainties and challenges for China to attract foreign investment and foreign investment. Growth rate of FDI inflows in 2011 below the global level and the level of developing countries as a whole. January to May this year, the field of non-financial FDI inflows declined by about 2%. China's FDI outflows decreased by 5% in 2011, this is the first decline since 2003; China's global ranking has dropped from six in 2010, 2011, 9.
Expected
 
This year, global FDI slowdown
 
The report pointed out that in 2011, despite the world economic turmoil, the global FD I flow still exceeded the pre-crisis average, reaching $ 1.5 trillion, but still about 23% lower than the highest level in 2007.
"The uncertainty of the economic development and emerging markets to the low growth rate of the possibility of a resurgence, it will be possible to affect the 2012 FD I," the report pointed out that this trend can be seen from the main indicators, cross-border mergers and acquisitions and greenfield investment amount in the first five months of 2012, the first decline in the first quarter of 2012 FD inflows also declined. UNCTAD predicted that in 2012 the world's the FD growth rate will slow, the flow rate of about $ 1.6 trillion level of plus or minus. At the same time, the long-term outlook shows robust growth momentum of global FDI, "If macroeconomic instability does not occur, the global flow of foreign capital in 2013 reached $ 1.8 trillion in 2014 to reach $ 1.9 trillion.
 
From the regional point of view of investment flows, "the report pointed out that the developing economies in 2011 FD inflows is still close to half of the global FD I inflow total (45%), an increase of 11 percent, reaching $ 684 billion, and further innovation record. 2011, inflows in transition economies FD another accounted for 6% of the total global inflows, an increase of 25%.
 
It is noteworthy that the inflows in East Asia and Southeast Asia, FD I grew 14 percent, reaching $ 336 billion. The region's share of the global total inflows ratio has increased to 22% from 12% before the global financial crisis. Of particular note is the increasingly strong: Southeast Asian of FD development momentum of FD flows to ASEAN reached $ 117 billion, an increase of 26%, the growth rate is much higher than 9% in East Asia.
 
Investment policies in 2011 in many countries continue to the implementation of the policy of easing the policy and the promotion of foreign investment in various sectors to stimulate economic growth. At the same time, the new regulation and restrictive measures introduced, including the introduction of measures on grounds of industrial policy.
The report also pointed out that the multinational's cash reserves reached a new high, but the willingness of foreign investment does not seem strong. The report shows that multinational companies cash holdings are expected to total $ 5 trillion, but recent data show that the additional cash reserves held by these companies are still not fully mobilized. This cash "excessive" reserves the phenomenon may promote FDI surged in the future.
 
In addition, the 2011 Global the FD I also show the following main trends: In value terms, for two consecutive years showed a decline trend of greenfield investment projects in 2011 stabilized at the level of $ 904 billion; FD into the basic industries and services I began to rebound after the decline in two years, at the same time, the manufacturing sector FD decrease; all major international production indicators show the economic activities of foreign subsidiaries are increasingly active.
 
Pressure
 
FDI in China face a two-way challenge the inflow and outflow
According to UNCTAD statistics, in 2011 FDI inflows increased by 8 percent, reaching $ 124 billion, ranked second in the world after the United States (226.9 billion U.S. dollars); the FD I outflow is reduced by 5% to $ 65.1 billion, the World ninth, after living in the United States, Japan, Britain, France, Hong Kong, China, Belgium, Switzerland and Russia. As of the end of 2011, FD I stock is estimated to be approximately $ 712 billion in outward FDI stock of about $ 366 billion.
In addition, China has attracted the structure of the FD I began to tilt to the service industry. Of FD into the service sector increase flows to the manufacturing sector FD I slow down, FD into the service sector than the manufacturing sector for the first time. In the service industry, real estate, trade and business services has been an important industry to attract foreign investment. The report points out that as China continues to liberalize the financial market, foreign financial institutions to expand market share through mergers and acquisitions and endogenous growth, inflow of China's financial sector, the FD is expected to grow.
 
"The current world economic difficulties and uncertainties for China to attract foreign investment and foreign investment has brought challenges." Pointed out that the United Nations Conference on Trade and Investment and Enterprise Secretary criterions 2011 the FD inflows to maintain growth, but growth (8%) lower than the global level (16%) and developing countries, the overall level (11%). January to May this year, the field of non-financial FDI inflows declined by about 2%.
Criterions in answer to a reporter's question of "Economic Information Daily, a continuous decline in foreign investment in China since the end of last year, is caused by multiple factors. First from external factors, the 2011 global the FD in the second and third quarter of substantial growth in the fourth quarter, began to decline, the first five months of this year global the FD is still declining, so this is not just China's problem, but a global trend. Secondly, from the Chinese domestic point of view of efficiency-oriented attracting foreign investment in reducing labor-intensive foreign investment in the transfer to Southeast Asia, Southeast Asia and low factor price attractive to foreign investors on the rise. In addition, a few years ago, foreign investment in China has been a substantial increase, the base is relatively high, which is caused by the current reasons for the decline.
 
Judged the annual foreign investment in China the situation, the industry generally believe that in general is fairly severe. Commerce Department spokesman Shen Danyang, international and domestic pressures will make this year's absorption of foreign capital the situation is grim. From the international point of view, the debt crisis in Europe there is no proper solution, decreased the ability of European enterprises to invest overseas. The U.S. government to promote manufacturing industry, the introduction of the United States, "and other plans to encourage the flow of capital. At the same time, American businesses by the European debt crisis has increased the investment in Europe. On the other hand, India, Brazil, Russia and other emerging economies has also become the new hot spot for multinational strategic layout. All of these factors will lead to changes in global direct investment flows. From a domestic perspective, the rising labor costs, tightening the supply of land and other resources, financing difficulties and multiple pressures still coexist, foreign enterprises to expand their willingness to invest in China has been some impact.
 
Foreign investment is also worthy of attention. The UNCTAD report noted that the 2011 FD I outflows decreased by 5%, which is the first decline since 2003; China's global ranking has dropped from six in 2010, 2011, 9. The decline in foreign investment in China did not expect, "said James Zhan, encourage enterprises to go out the policy background, this decline is worth attention and consideration.
 
He further analysis pointed out that the decline of China's foreign investment mainly due to changes in the external investment environment, on the one hand, some countries and regions of political unrest, making overseas investment losses, on the other hand, the rise of investment protectionism, especially in part for China investment protection, is one of the reasons obstruct Chinese enterprises to go global.



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