FDI Dives for 4 Consecutive Months
The Ministry of Commerce revealed yesterday (Feb 16th) that in January, foreign direct investment (FDI) in China fell for the fourth month in a row as the global economic crisis deepens. Last month's FDI dropped 32.6 percent year-on-year to $7.54 billion, whereas in January 2008, it had risen by 110 percent. Analysts said the drop was partly caused by recession in developed economies, and multinationals' reluctance or lack of liquidity to invest at this stage. They also forecast that the drop in investment is likely to continue for at least a few more months.

Chinese Companies to Shop in Europe
According to the Ministry of Commerce, the Chinese government will send a business delegation at the end of this month, to purchase goods from Europe in order to strengthen bilateral trade ties amidst the global economic downturn. Spokesman for the Ministry of Commerce, Yao Jian, said the delegation will be visiting Switzerland, Germany, the United Kingdom and Spain. Yao also said that the delegation will be shopping for technological products, heavy equipment, key goods and services; and that Europe's many advanced technologies and environmental protection equipment will help adjust the structure of China's economy.

China May Impose 5% Tax on Aluminum Imports
Officials revealed yesterday (Feb 16th) that China is considering reinstating a five-percent tax on imports of primary aluminum from March 1st as stocks in China, the world's top aluminum market balloon. The tax may spur Chinese importers to cancel or delay tens of thousands of tons of spot primary aluminum due to arrive in the coming weeks. This protectionist move is seen by some as a way to counter balance rising imports which otherwise would nullify the State Reserves Bureau's (SRB) earlier efforts to support Chinese smelters by purchasing 290.000 tons of aluminum from eight companies last December. Chinese smelters, led by State-owned Chinalco (Aluminum Corporation of China), are said to have previously lobbied the government to impose a 10-percent tax on the imports.