China-bound investment sees 22% decline
November 22, 2012, 12:42 pm TWN
TAIPEI -- Investment in China by Taiwanese companies dropped for the ninth consecutive month in October, with an annual decrease of 22 percent recorded in the first 10 months of this year, according to the latest statistics compiled by the Ministry of Economic Affairs.
In October, the government approved US$590.64 million-worth of China-bound investment, down 6 percent from the same month of last year, the Investment Commission under the ministry said.
Investments approved during the January-October period dropped 22.66 percent year-on-year to US$8.64 billion.
Chang Ming-pin, spokesman for the commission, noted that China is the main production base for Taiwan's information and communication technology companies.
With orders declining due to the economic downturn in Europe, the United States and Japan, however, these companies have shown little interest in expanding their production lines in China, he said.
Despite the decline in China-bound investment, investment by Chinese companies in Taiwan rose 309.42 percent to US$156.74 million during the first 10 months, the statistics show.
Excluding China, inward foreign investment was up 18.52 percent to US$4.3 billion during the same period, while outward investment increased 152.21 percent to US$7.61 billion.
Meanwhile, data from the Financial Supervisory Commission indicated that investment in China by Taiwanese listed and over the-counter companies was valued at NT$1.41 trillion as of the end of September, up NT$99.1 billion from the end of 2011.
Profits from the investments totaled NT$81.3 billion, down NT$37 billion from last year.
The commission attributed the decrease to the slowing economic growth and weakening demand in China, as well as the global economic downturn due to the eurozone debt crisis.