Beijing (AsiaNews / Agencies) - The Beijing government has announced that direct foreign investment in China fell by 5.9% in a year. To attract more capital, the second largest economy is studying ways to ease taxes on dividends.
In
total, foreign
investment fell to 12 billion U.S. dollars in
June, marking the lowest drop since last December. According to figures published today, instead
the European Union investment picked up:
in the first six months of 2012 it invested
3.52 billion U.S. dollars in China, with an increase
of 1, 6% from last year.
To attract more
investment, China plans to
reduce rates on dividends
for countries that have tax treaties with Beijing, the fees will be 5%
instead of 10%.
The Chinese economy is experiencing its most severe slowdown
of the last three years, with growth of 7.6%. Two
days ago Prime Minister Wen
Jiabao warned that
recovery is still ongoing and
that "over time things can get worse."
In return, the Department of Commerce
announced today that non-financial foreign investment grew by 48% in the
first half of the year. Car
companies like Nissan and Fiat are focusing on
China to increase their sales.
China is the largest car market in the world.