|China Economy Stalling on FDI|
|by Tom McGregor||Thu, Feb 21, 2013, 02:56 AM|
BEIJING: Foreign direct investment inflows into China dropped at their fastest rate in more than three years in January, which highlights challenges the country faces to compete for funds with cheaper rivals in a sluggish global growth environment.
According to the Chicago Tribune, "China Commerce Ministry data on Wednesday showed the world's second-biggest economy drew in $9.3 billion of foreign direct investment (FDI) in January, down 7.3 percent on a year ago."
The plunge was the steepest in year-to-date inflows since a 9.9 percent drop in November 2009, and it had been the worst January performance in four years.
As reported by the Chicago Tribune, "January FDI was down from December's $11.7 billion, with inflows from key Asian economies and the United States down in the latest period, reflecting what analysts say are foreign perceptions of a decline in China's near term growth prospects."
Zhang Zhiwei, chief China economist at Nomura in Hong Kong, disclosed the continuing drop in FDI – the longest consecutive run since the global financial crisis, reflects the increasing competitive challenges facing the world’s biggest manufacturer of exports.
To read the entire article from the Chicago Tribune, link here:
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