China FDI was down 8.7% yoy in July16 August, 2012, 21:16. Posted by Zarathustra
China inbound foreign direct investment (FDI) continues to fall in July.
The Ministry of Commerce latest data show that inbound FDI has fallen by 8.7% compared with a year ago.
The current persistent negative growth in FDI is the longest streak since the financial crisis in 2008/09, although as you can see from the chart below, the decline in inbound investment has been relatively modest for the time being compared with 2008/09 downturn.
The amount of inflow for the month is the smallest since 2010.
This is consistent with the general picture we have gathered over the past many months. The slowing economy has probably reduced the interests for foreign companies to invest in China, and FDI flow is coming off from a relatively high base, thus there is nothing particularly dramatic happening just yet despite FDI inflow obviously trending downward.