FDI into China down 3% in the first half of 2012

The flow of foreign direct investment (FDI) into China in the first half of 2012 dropped 3% compared to the same period last year, a further indication of the country’s cooling economy, Reuters reported. While FDI figures have not yet been formally announced, Wang Chao, a vice commerce minister, said at an investment policy seminar in Hong Kong that between January and June China’s FDI inflows totaled US$59.1 billion. That implies China drew US$12 billion in FDI in June, a 7% drop compared to the previous year and the sixth consecutive month of FDI decline. Analysts say the eurozone crisis and China’s economic slowdown are likely responsible for the drop. Nevertheless, Wang said Beijing expects FDI inflows to pick up in the second half. Measures taken by the central government would “help revive confidence of global investors,” said Wang, predicting that FDI figures for the year would remain stable.