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.
On the 18th of December, the People’s Bank of China issued its quarterly survey of economic expectations, indicating that growing numbers of bankers await more easing measures to be introduced by the Chinese government in the coming year. These expectations come along with the observable reduction tendency in foreign investment operations. Foreign investors try to decrease their spending commitments as they see not favorable winds of world’s economic conditions due to the European debt crisis and the U.S. fiscal cliff. Scaling back might darken prospects for the world’s second economy.