China remains top investment destination. - A survey by HSBC has revealed that foreign direct investment (FDI) into China fell in 2012 for the first time in three years. The crisis that hit European companies has something to do with this: China received a total of $6.1 billion in capital invested by Europe over this period, a fall of 3.8%. Investment from Asia also fell by 4.8%. Nonetheless, with a figure of $95.7 billion in FDI, Asia remains the biggest investor in China. Last year, the US invested 4.5% more than in 2011. Despite the fall in FDI, China remains a favourite destination of global investors and has confirmed its place at the top of the global FDI league table. Chinese companies have been stepping up their ties with the rest of the world and, in 2012, invested $77 billion abroad, a rise of almost 29%. Foreign direct investment in China was $111.7 billion last year, which is below the record $116 billion in 2011 (-3.7%). Despite a rather bullish first-quarter, the second part of the year saw fiercer competition from other investment destinations. The fall was particularly significant in December, a fall of 4.5% in direct investment compared to the same period in 2011. Following several years of overinvestment, the textile sector experienced a harsh setback, with a fall of 18.9% in capital invested over the first nine months of 2012. At the same time, investment increased by 66% in Indonesia and by 43% in Thailand. Constantly rising wage costs over a number of years in China (+20% a year on average from 2005 up to 2011) is one possible explanation. Overall, other Asian countries are proving interesting investment terrain for foreign investors. This is the case with India and certain ASEAN countries (Thailand, Indonesia, Vietnam and Malaysia). Before the crisis, ASEAN countries attracted 8% of global investment flows, which subsequently fell to 2%. Investors are once again discovering these destinations, to the extent that ASEAN countries are now practically on the same level as China in the level of FDI they receive (7.6 % and 8.1 % respectively). According to HSBC, ASEAN's share of global investment flows is expected to increase further over the next decade. Although India possesses real advantages in terms of its workforce, foreign investors are being put off by the country's precarious infrastructure and its red tape. On the other hand, Indonesia's share of FDI is expected to increase from the current $165 million to $183 million by 2020. Vietnam would also seem to be an attractive investment destination, just as Thailand and Malaysia but to a lesser extent for the two latter countries, whose competitiveness is lower in terms of price levels offered. (IL/transl.fl)