China's foreign direct investment posts positive growth in April

Foreign direct investment (FDI) into the Chinese mainlandrose by11.8 percent year on year to 70.36 billion yuan (9.92 billion U.S. dollars) in April amid the COVID-19 pandemic, said an official with the commerce ministry on Thursday.

During the January to Aprilperiod this year,theFDI totaled 286.55 billion yuan, down 6.1percent year on year,dragged by the coronavirus pandemic, said Gao Feng, a spokesperson with the commerce ministry.

The FDI inflow to the high-tech industry between January and April increased by 2.7percent year on year. Among them, information services, e-commerce services and professional technical servicessurged by 46.9percent, 73.8percent, and 99.6percent respectively year on year, said Gao.

Meanwhile, the investment from countries along the Belt and Road rose by 7.9 percent, and that from ASEAN countries increased by 13 percent. But the investment fromthe EU dropped by 29.1 percent.

Gao also cautioned that due to the pandemic, China's foreign investment situationthis year is still facing challenges, and global cross-border direct investment is still in a downturn.

Foreign trade faces downward pressure

This year, China still faces increasing downward pressure on foreign trade as the COVID-19 severely disrupted the global supply chains, said Gao.

"Small and medium-sized enterprises and labor-intensive industries may bear the brunt," said Gao. He said the ministry will continue to roll out targeted measures to help foreign trade companies to navigate the difficult situation and enter into the international market.

However, the country's exports rose by 3.5 percent in Aprildespite the hit of the COVID-19 and thanks to positive results in epidemic control and quickened pace of resumption, while imports fell by 14.2 percent.

From the demand side, the market demand in Japan and South Korea recovered relatively quickly. In April, China's exports to both countries achieved substantial growth, said Gao.

Meanwhile, the growth rate of China's exports to ASEAN in April was higher than the overall growth rate. From January to April, China's exports to ASEAN rose by 3.9 percent with the proportion increasing by 1.5 percentage points.

(CGTN)