China's FDI drops 3.7%

Foreign direct investment in China in 2012 declined 3.7 percent year-on-year to $111.72 billion, the Ministry of Commerce said at a news briefing on Wednesday.

December saw FDI in China drop 4.5 percent from a year earlier to $11.7 billion.

The US investment in China in 2012 increased 4.5 percent year-on-year to $3.13 billion while EU spending in 2012 decelerated 3.8 percent year-on-year to $6.11 billion. FDI from Japan in 2012 rose 16.3 percent year-on-year to $7.38 billion despite the islands row.

China's non-financial outbound direct investment in 2012 surged by 28.6 percent year-on-year to $77.22 billion.

Data from the National Bureau of Statistics showed that China's economy grew by 7.4 percent year-on-year in the third quarter of 2012, slowing for the seventh consecutive quarter. Key economic figures for the last quarter are scheduled to be released on Friday.

However, the economy has shown some signs of stabilization in recent months.

China's Purchasing Managers' Index, a key barometer for the manufacturing sector, remained at 50.6 percent in December, according to official data released early this month.

The PMI figure stood above the boom-or-bust line of 50 percent for a third consecutive month, demonstrating a trend of moderate economic recovery.

"China's economic growth will be generally sound in 2013," Minister of Commerce Chen Deming said here on Monday in a meeting with large foreign enterprises investing in China.

Chen predicted that FDI into China this year will stay at the level of 2012 as domestic consumption and investment are likely to maintain steady growth.

"Representatives of foreign companies investing in China are still positive about China's investment climate and expressed willingness to continue to expand their investment," said Shen, who also attended the meeting.

 

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