INVESTMENT OASIS: China remains attractive to foreign investors because of its
infrastructure improvements and vibrant consumer market. Pictured here is the
Financial Street in the Tianjin Binhai New Area

The world's deep-pocketed investment gurus, pummeled by the ongoing U.S. subprime credit debacle, now have a reason to think twice before pouring their money into any project. But when it comes to investing in China, they do not seem to be dragging their feet.

According to data from the Ministry of Commerce, the country's paid-in foreign direct investment (FDI) in the first eight months of this year defied the global economic slowdown and gained 41.6 percent year on year to reach $67.7 billion, underscoring China's established appeal to international companies. China had received $74.8 billion in FDI in 2007, the 15th year in a row that it topped the list of developing countries in terms of paid-in FDI.

Analysts say the high amount suggests that savvy global investors are increasingly looking to China as an ideal place to invest money in sharp contrast to their dark outlook on Western countries.

Chen Deming, China's Minister of Commerce, also said at the 12th China International Fair for Investment and Trade (CIFIT) in Xiamen, southeast coastal Fujian Province, earlier this month that China remains an investment hotbed for global giants despite concerns over rising costs and ever-fiercer scramble among emerging markets for FDI inflows. He said this was largely because of the country's solid infrastructure, a large pool of relatively skilled yet affordable laborers, double-digit economic growth and an ever-expanding consumer market.

Because of government spending sprees on infrastructure improvements in the past decades, China now leads most other countries in some basic indices such as the number of airports, lengths of highways and railways, and Internet and phone subscriber numbers.

China also has about 5 million university graduates who enter the workforce each year, continuously replenishing the talent pool for international companies. Chen said the relatively cheap labor here is one of the reasons that multinational giants fare so well in China.

Besides this, China's economy is gaining momentum from its growing consumer market as wealthier citizens buy more products and services. This also has polished the country's appeal to foreign investors, Chen said.

Chen is not alone in his optimism about China as a lucrative investment destination. Numerous global giants also have given China their vote of confidence by swarming to this year's CIFIT. Nearly 300 top global funds joined in the hunt for investment opportunities at this year's trade and investment fair, including the U.S. global private equity firm the Carlyle Group and investment banking company Lehman Brothers Holdings Inc.