Healthy growth in FDI sends strong vote of confidence

Reform measures, improved policies make country more attractive to global investors

Foreign direct investment in China showed robust growth in January, reflecting global investor confidence in the world's second-largest economy.

The Ministry of Commerce said on Tuesday that the strong FDI inflow gained support from the nation's reform initiative started last year, an improved investment environment and the opening-up of the service sector.

Foreign investment surpassed $10.7 billion last month, up 16.1 percent year-on-year, the fastest pace since July, according to the ministry.

"The double-digit FDI inflow is the best response to the doubt about China's investment environment and the country's economic prospects," Shen Danyang, ministry spokesman, told reporters.

Recent signs pointed to weakening growth momentum in the Chinese economy. A decline in the purchasing managers index in January suggested contraction in manufacturing and services. A near-default trust product caused widespread fears in financial markets while the record new credit last month added concerns on limiting turbulence risks from defaults and bad loans.

Better-than-expected export data in January eased worries of a slowdown but aroused suspicions of a resurgent inflow of hot money covered by fake trade invoices. Shen said that trade figures last month were within expectations.

Wang Jun, an expert at the China Center for International Economic Exchanges, a government think tank, said, "China's economic outlook will be more optimistic. Growth between 7 and 8 percent, compared with the performance of other emerging economies, will be attractive to global investment."

Don't miss:

Top 10 overseas travel destinations for Chinese riches	Top 10 trading partners of Chinese mainland