Newest data showed that China’s foreign direct investment slumped as much as 7.3 percent in January on a year-on-year basis. The drop in FDI is one of many in an unbroken chain of consecutive year-on-year declines, proving that the global economic conditions are still uncertain. It is also a clear signal that the China’s recovery from an economic slowdown has not awoken investors’ confidence yet.
China’s foreign direct investment decreased roughly 3.7 percent in 2012 from 2011. It is a first fall in China’s annual FDI since 2009, according to the official figures. China saw its 2012 FDI drop as investors either had not been so keen on investing in emerging markets due to current economic conditions or had been choosing to transfer their businesses to markets with cheaper workforce.