FDI in China falls for 12th straight month

Beijing: A measure of foreign direct investment in China declined for the 12th straight month, underscoring Beijing’s struggle to improve its appeal to overseas investors to boost growth, Bloomberg reported.

Inbound FDI in China dropped 28.2 per cent in the first five months of 2024 from the same period last year to 412.51 billion yuan ($56.8 billion), according to data released by the Chinese Ministry of Commerce on Friday. The figure was worse than the 27.9 per cent drop in April and extended a streak since June 2023.

The Ministry of Commerce said that FDI fell in January-to-May mainly because of a high comparison base and reiterated authorities have increased efforts to attract foreign investment since the beginning of the year.

China’s leadership has sought to boost foreign investors’ confidence in the country in the wake of an historic decline in overseas flows amid concerns about diminishing growth prospects.

In February, Premier Li Qiang named stabilizing foreign investment a key focus of the year’s economic work and pledged to keep expanding market access and improving an environment for fair competition.