Foreign Direct Investment (FDI) in China reached US$6.92 billion in July, up 26.2% year-on-year but significantly lower than the US$12.5 billion recorded for June, the Wall Street Journal reported. It comes after fixed-asset investment and industrial production both slowed in July, while international data pointed to a slowdown in the global economy. Economists played down the significance of the fluctuation. Peng Wensheng of Barclays Capital said there is sufficient liquidity in the US and Europe to encourage more investment in China, so FDI is unlikely to see a sharp slowdown. Xing Ziqiang of China International Capital Corp said he still expects FDI to grow faster than 25% in 2010, which would represent an acceleration from the 20.7% growth seen in January-July and the 19.6% growth for January-June.
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