China steals the show for FDI inflows to Asia

China, Hong Kong and Singapore accounted for more than three quarters of the total foreign direct investment (FDI) inflow to developing Asia in 2002, the World Trade Organisation’s International Trade Statistics 2003 report has said. According to the report, if China was excluded from the total, there was a decline in FDI inflows to Asian developing countries in 2002 compared to the previous year. During 2002, economic growth in Asia was limited to only 1.5 per cent, unchanged from the preceding year and only half the average rate recorded in the 1990’s. Despite the recovery in its merchandise trade export growth at 8 per cent and import growth at 6 per cent, the recovery in Asia remained incomplete as the respective trade values remained below their 2000 peak levels, the report said. The recovery in commercial services trade was weaker than that of merchandise trade. Commercial service exports rose faster than imports.