China attracted US$7.6 billion in foreign direct investment in August, up 1.38% from a year earlier, but slowing sharply for the second consecutive month compared with the 29.2% year-on-year growth in July and the 39.6% growth in June, the Wall Street Journal reported. The release of the monthly data Wednesday follows Chinese Premier Wen Jiabao’s promise that foreign businesses in China will be treated fairly. Foreign firms operating in China have recently complained of inconsistent enforcement of regulations, biased state procurement processes and insufficient protection for intellectual property. It is unclear whether foreign companies’ dissatisfaction affected the FDI figures. Some economists said August’s slower growth is partly a result of a statistical base effect. China’s FDI data usually fluctuate from month to month, UBS Securities economist Wang Tao said, and foreign investment won’t grow sharply as the country’s capital supply is already sufficient.
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