Foreign direct investment in China fell for the 11th time in 12 months, dropping 0.2 percent in October from a year earlier to $8.31 billion, says the Ministry of Commerce.
FDI inflows in the first 10 months of the year declined 3.5 percent to $91.7 billion, compared with a slide of 3.8 percent in the first nine months.
According to Bloomberg, the decline highlights challenges for new Chinese leadership headed by Xi Jinping, who took the reins of the ruling Communist Party last week in a once-a-decade power handover, as officials seek to reverse a growth slowdown.
China's economy may expand by 7.7 percent this year, the weakest pace since 1999, based on the median estimate of analysts surveyed by Bloomberg News.
“The economic growth model is changing, and some investors may have to relocate to other countries if they are seeking just low costs,” Li Huiyong, chief economist at Shanghai-based SWS Research Co., a securities researcher and consultant, told Bloomberg.
A territorial dispute with Japan has also harmed trade. Japanese investment in China slowed in October, data from the Commerce Ministry show. Investment rose 10.9 percent in the first 10 months to $6.08 billion, compared with a 17 percent increase in the January-September period to $5.62 billion.