Foreign investment in China fell in May to its lowest level in 16 months, partly due to slowing growth.<\/p>\n
The government says China attracted $8.6bn (\u00a35.1bn) in foreign direct investment (FDI) in May.<\/p>\n
That is a 6.7% fall from the same period last year and marks China’s weakest FDI report since January 2013.<\/p>\n
Economists say prospects of slower growth in the world’s second-largest economy may have deterred foreign investors.<\/p>\n
China’s economy expanded at the pace of 7.4% in the first three months of this year, down from 7.7% growth in the previous quarter.<\/p>\n
Earlier this year, Premier Li Keqiang set a target of about 7.5% growth for 2014.<\/p>\n
China’s GDP growth has been falling since 2010, when it stood at 10.4%.<\/p>\n
FDI includes greenfield investment projects, such as newly built factories, as well as mergers and acquisitions.<\/p>\n
And the monthly FDI figures can fluctuate as individual investment projects are announced.<\/p>\n
The FDI data comes as Mr Li is in the UK on a three-day visit, looking to drum up more investment from the UK.<\/p>\n
Domestic boost<\/strong><\/p>\n To counter the reliance on foreign investment and external factors for growth, China has also been looking to pursue economic growth at home by boosting its infrastructure.<\/p>\n Earlier this month, the State Council said China would build a multi-tier transport system along the Yangtze River, to help create a new economic belt.<\/p>\n According to official data, the 11 provinces and municipalities along the river account for almost 41% of China’s overall gross domestic product.<\/p>\n In April, the government said it would cut taxes on small firms and speed up the construction of railway lines across the country.<\/p>\n","protected":false},"excerpt":{"rendered":" Foreign investment in China fell in May to its lowest level in 16 months, partly due to slowing growth. The government says China attracted $8.6bn (\u00a35.1bn) in foreign direct investment (FDI) in May. That is a 6.7% fall from the same period last year and marks China’s weakest FDI report since January 2013. Economists say […]<\/p>\n","protected":false},"author":5,"featured_media":25439,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[4],"yoast_head":"\n