Foreign direct investment (FDI) into China declined by 1.47 per cent in March to $12.24 billion, the first drop in over a year, as its economy showed signs of slowing down.
The volume for the first quarter of 2014 came in at $31.55 billion, an increase of 5.5 per cent from a year earlier, the Ministry of Commerce said today.
Attributing the fluctuation to changes in individual investment projects and macro economic policies such as the recent yuan volatility, a ministry spokesperson said that the March drop was normal.
“The fluctuation won’t affect the steady growth of foreign investments for the whole year,” while China will remain a very important investment destination for global investors,” the ministry said.
Significantly much of the FDI flows went into the services sectors instead of manufacturing which was Chinese economy’s mainstay for long.