Foreign direct investment shifts to further favor China's services sector

Foreign direct investment in mainland China’s services sector grew 7.8% in 2014 over the previous year, with inflows totaling US$66.2 billion, or 55.4% of all such investment, South China Morning Post reported, citing accounting firm KPMG. Overseas investment in the manufacturing sector – long the driving force of China’s economic growth – fell 12.3% to US$39.9 billion, accounting for only 33.4% of total inflows. Total foreign direct investment grew just 1.7% to US$119.56 billion last year, according to Ministry of Commerce data, down substantially from the 23.6% growth in inflows seen in 2008.