Foreign direct investment in China jumps 32%

Foreign direct investment in China rose for a fourth straight month in November as the country's rapid recovery from the global economic downturn attracted more overseas money.

Investment rose 32 per cent in November from a year earlier to $7.02 billion US, Commerce Ministry spokesman Yao Jian said in a news conference Wednesday. The figure excludes stocks and other financial assets.

"This shows the economy is improving and reflects foreign investors' confidence in China," Yao said.

The government has reported rises from year-earlier figures in foreign investment since August. However, total investment in January-November was down 10 per cent from a year earlier at $77.9 billion US.

Some foreign companies cut investments in China as the global slowdown squeezed credit and spending, but economic growth is rebounding and consumer purchases are rising.

The number of newly approved foreign-invested enterprises rose 10 per cent from a year earlier in November to 2,437, though the cumulative figure for the year of 20,900 was down 17 per cent from the same period of 2008.

China's economy grew 8.9 per cent in the third quarter of this year and is forecast to easily exceed eightper cent growth for the full year.