China’s foreign investment declines in July

Foreign Direct Investment (FDI) in China fell 8.7% in July, the government said on Thursday, as the economy continues to feel the pinch of slowing global growth and the European debt crisis. Overseas companies invested $7.58 billion in factories and other projects in China last month, the commerce ministry announced. For the first seven months of the year, FDI fell 3.6% on year to $66.67 billion. The July result represents the worst fall since December and continues a downward trend that goes back to November, with the exception of May, when it eked out a marginal gain of 0.05%. “The slowdown in world economic growth, increasing uncertainties and a lack of proper solution to the European debt crisis” were external factors contributing to the decline, said ministry spokesman Shen Danyang. He also cited volatility in global financial markets as well as the US government’s call for boosting the country’s manufacturing sector and encouraging investment domestically as causes for the decline.