Foreign Investments into China Decline

by CFO Innovation Asia Staff, 17 August 2012

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Foreign direct investment into China decreased 3.6% to US$66.7 billion in the first seven months of the year versus 2011, according to The Commerce Ministry.

July’s inflow alone was $7.6 billion, down 8.7% year on year.

Investment from European Union companies fell 2.7% year-on-year in the first seven months to $4.0 billion, while investment by US firms went up 1% to $2 billion.

FDI inflows from Asian countries were also negative on a year-on-year basis.

Investment from the top 10 Asian economies, including Hong Kong, Japan and Singapore, fell 3.8% between January and July versus same period from a year ago to $57.3 billion, the ministry said.

China drew record $116 billion in foreign direct investment last year. The government's goal is to attract an average of $120 billion in each of the next four years.

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