Foreign Investments In China Continue to Slowdown

Foreign direct investment (FDI) in China (excluding the financial sector) rose only 1.3% year over year in October to 8.53 billion dollars, reflecting the slowdown in the Chinese economy.

The October figure, released Tuesday by the Government, is part of an underlying trend: FDI rose only 1.9% year over year in September, after plunging 14% in August, their lowest level in four years.

In the first ten months of 2014, foreign direct investment in China reached 95.88 billion dollars, a decline of 1.2% year over year.

Recent investigations launched by the Chinese competition authorities have influenced this result, foreign firms often find themselves primarily affected by the results of these investigations. However, the Chinese Ministry of Commerce has always denied targeting foreign companies.

For their part, Chinese investments abroad, after several months of irresistible ascent stalled last month, falling 12.2% year over year.

In the first ten months of 2014, Chinese investment abroad however reach 81.88 billion dollars, up 17.8%.

Beijing, keen to secure supplies of raw materials and to open market opportunities as the country goes through an economic growth, actively supports the international expansion of Chinese firms, pushing them to multiply acquisitions.

The authorities also expect Chinese investment outside the country to exceed the volume of FDI in China throughout the year.

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