China FDI Shows Full-Year Decline as Economic Expansion Slows

January 21, 2013

China's foreign direct investment declined for the first full year since 2009 as economic growth slowed and manufacturers relocated to markets with cheaper labor, contrasting with outbound spending that surged to a record.

Inbound FDI dropped 4.5 percent in December from a year earlier to $11.7 billion, the 13th decline in 14 months, according to Ministry of Commerce data released in Beijing today. For the full year, inflows fell 3.7 percent to $111.7 billion, while China's non-financial investment abroad increased 28.6 percent to $77.2 billion.
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