New figures show that China drew over a quarter more foreign investment in the first two months of the year compared with a year earlier, as firms flocked in to get a foothold in the world's fastest-growing major economy.
The 27.1% jump in foreign direct investment from a year ago to $17.8 billion, unveiled by the Commerce Ministry this morning, was also a sign that China's economic activity stayed brisk despite policy tightening steps over the past half year.
Although investors say they worry about China's rising labour costs, market barriers and patchy protection of intellectual property rights, many firms are still willing to look past them in exchange for booming growth.
Foreign investment in China, which surged after it joined the World Trade Organisation in 2001, has recovered strongly after being hit hard by the global economic slowdown.
FDI inflows have revived globally with the ebbing of the 2008 financial crisis with the likes of Malaysia also reporting a rise.
Too much foreign investment can also be a headache, adding to the vast pool of money in China that has driven inflation near its fastest in more than two years. The main source of that cash is China's bulging trade surplus, but large-scale FDI inflows add to the problem.
