Foreign direct investment (FDI) in China fell by 17.8% year-on-year to US$6.38 billion in May, a sign that the global financial crisis is continuing to slow investment in China, the Wall Street Journal reported, citing data from the Ministry of Commerce. However, May’s decline was smaller than April’s 22.51% drop in FDI. Foreign investment from January to May was down 20.4% year-on-year to US$34.05 billion, though FDI was unusually high in the first half of 2008 due in part to expectations of a rising renminbi. While China’s economic stimulus program has helped shore up industrial output and fixed asset growth, the global financial crisis has dealt a blow to FDI and exports. Foreign investment accounts for one in 10 jobs in China and more than half of the country’s trade so continued problems could threaten employment levels and economic growth.
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