Foreign Investment in China Continues Growth

China reported an acceleration in foreign direct investment, suggesting government measures to slow the economy aren't prompting overseas companies to scale back their expansion plans.

Investment from abroad increased 11 percent from a year earlier to $25.9 billion in the five months through May after rising 10 percent in the first four months of this year and 7.5 percent in the first quarter, the Beijing-based Ministry of Commerce said on its Web site. Contracted investment, a sign of future investment, jumped 50 percent to $57 billion.

China's growing demand for cars, computers and cell phones is attracting investment even as the government aims to slow economic growth to 7 percent this year from a seven-year high of 9.1 percent in 2003. Volkswagen AG and General Motors Co. plan to at least double their China production capacities in the next four years, they said last week at a Beijing auto show.

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