Foreign direct investment in China rose to a record $ 105 . 7 billion last year , underscoring confidence that rising incomes will boost demand in the world ’ s fastest - growing major economy . Investment climbed 17 . 4 percent from a year earlier , the Ministry of Commerce said in a statement in Beijing to Tuesday . Spending in December rose 15 . 6 percent from a year earlier to $ 14 billion . Estimates of five economists surveyed by Bloomberg News for the month ranged from an increase of 29 percent to a decline of 21 percent . Boosting wages and reducing income inequality will be major tasks over the next five years , China ’ s leaders said in October after setting targets for the economy for the 12 th five - year plan . Samsung Electronics Co . and LG Display Co . , the world ’ s two biggest makers of liquid - crystal displays , received Chinese government approval to build LCD factories in the country and meet surging demand . “ Foreign companies tapping Chinese consumers will benefit from rising wages and will continue to invest in China , ” said Alan Liao , an economist at Chinatrust Commercial Bank in Taipei . “ There ’ s a misconception that higher salaries will force companies out of China , this may apply to low - margin textiles or toy manufacturers , but it ’ s not true for value - added service sectors and high - margin technology companies , ” he said . China in 2009 overtook the U . S . to become the world ’ s biggest car market , passed Germany as the largest exporter and likely surpassed Japan to become the second - biggest economy in 2010 . It may overtake the U . S . as the largest economy by 2027 , according to Goldman Sachs Group Inc . chief economist Jim O ’ Neill . The economy probably expanded about 10 percent , Vice Premier Li Keqiang said last week . Growth may slow to 8 . 7 percent this year as the government tries to limit increases in asset prices , the World Bank said in a Jan . 12 report . Foreign investment inflows are adding to liquidity flooding the economy from the trade surplus and surging bank lending and putting pressure on the central bank ’ s policy of restraining yuan appreciation . The People ’ s Bank of China has raised interest rates and told banks to keep more money as reserves to mop up cash . The government is also encouraging outbound investment , allowing companies to keep foreign - currency earnings overseas and boosting use of the yuan for trade and investment . Outbound investment by non - financial companies climbed 36 . 3 percent to $ 59 billion , the commerce ministry said Tuesday . Overseas mergers and acquisitions by Chinese companies rose more than 30 percent last year to a record 188 with a combined deal value of $ 38 billion , PricewaterhouseCoopers LLP said at a press briefing yesterday . ( Bloomberg ) Middle - income and affluent consumers with annual household incomes of more than 60 , 000 yuan ( $ 9 , 000 ) will probably almost triple in the next 10 years to 415 million , Boston Consulting Group Inc . said in a report released on Nov . 8 . There will be “ strong ” increases in salaries in the five years to 2015 as the nation ’ s supply of labor dwindles and consumers spend more and save less , Credit Suisse Group AG said in a report dated Jan . 1 . Wages may rise by 19 percent a year and private consumption may climb to 41 . 7 percent of GDP in 2015 from 35 . 6 percent last year , the bank estimated . Companies in the online shopping and financial industries will benefit most from the increase in wages and consumer spending during the period , analysts led by Vincent Chan and Peggy Chan wrote in the report . Wal - Mart Stores Inc . and group partners last month agreed to invest more than $ 500 million in Chinese online retailer 360 buy Jingdong Mall . China became the largest LCD - TV market in the third quarter , surpassing the U . S . , according to Soh Hyun Cheol , an analyst at Shinhan Investment Corp . in Seoul . Samsung and LG are planning to build multi billion - dollar factories in Suzhou and Guangzhou to meet Chinese demand for flat panel displays used in televisions and computers . Taiwan ’ s AU Optronics Corp . last month said its board approved an additional $ 167 million investment in its plant in Kunshan , eastern Jiangsu province , that makes color filters used in LCD TVs and flat - screen monitors . The company is awaiting approval to build a $ 3 billion LCD plant in Suzhou . ( Bloomberg )