“Foreign direct investment in China fell for the 11th time in 12 months as labor costs rose, an economic slowdown threatened to drag growth to a 13-year low and a territorial dispute withJapan weighed on trade.
Investment dropped 0.2 percent in October from a year earlier to $8.31 billion, the Ministry of Commerce said in Beijing today. FDI inflows in the first 10 months of the year declined 3.5 percent to $91.7 billion, while non-financial outbound investment rose 25.8 percent to $58.2 billion.
The decline in inflows highlights challenges for new Chinese leadership headed by Xi Jinping, who took the reins of the ruling Communist Party last week in a once-a-decade power handover, as officials seek to reverse a growth slowdown. The world’s second-largest economy may expand by 7.7 percent this year, the weakest pace since 1999, based on the median estimate of analysts surveyed by Bloomberg News.”
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