China is seeing a steady monthly drop in the amount of foreign direct investment into the country, the Ministry of Commerce announced on Wednesday.
In December, incoming foreign direct investment or FDI fell by 4.5% year on year. For the whole of 2012, that decline was 3.7% from a year ago.
In dollar terms, more than $111 billion flowed into China in 2012. That’s down from a $116 billion high in 2011. It’s the first time the yearly figure has fallen since 2009, when the world saw an economic slowdown.
The inflow FDI drop is thanks to less money coming in from Europe and Asia. As property and labor costs rise in China, investers are looking elsewhere. However investors from the United States however, have been pumping more money into China for the past 12 months. FDI from the US increased 4.5% since last year, to $3.1billion dollars.
The fall in China’s inward FDI is contrasted with the amount of money leaving China. Non-financial investment overseas increased by 28.6%, or more than $77 billion dollars.
NTDTV
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