Guangzhou, China, 09 Feb – More than 7,000 foreign-funded companies were set up in Guangdong province in southern China in 2005, investing a total of US$21.1 billion, a year on year decrease of 3.3 percent, according to figures from the Guangdong Administration of Trade and Industry published Thursday.
In 2005 the total number of companies set up in Guangdong fell by 4 percent against 2004.
In 2004 foreign-funded enterprises invested US$21.8 billion, a 42.5 percent increase on 2003 when the figure reached US$17.5 billion.
Of the new companies set up in Guangdong, 6,179 are Asian, 394 from Latin America, 353 from North America, 260 from Oceania, 164 from Europe and 71 from Africa, the official figures showed. The origin of the remaining 30 companies was not specified.
According to the figures the number of companies investing in Guangdong from Euroep and Africa increased while Hong King maintained its position as the biggest investor.
At the end of 2005 Guangdong province had 58,762 foreign-funded enterprises, which invested a total of US$288.9 billion.
Cheng Jiansan, an economist at the Guangdong Academy of Social Sciences told the South China Morning Post newspaper that the lower level of investment was due to increased labor prices and heavy competition from other regions of China, particularly the Yangtze river delta region and the Special Economic Area of the Pan-Bo Sea.
Guangdong province has an area of 180,000 square kilometers and a population of some 75 million people. (macauhub)