Foreign Direct Investment Falls for the Fourth Straight Period in October
For the fourth straight period base on a cumulative basis in October, foreign direct investment in China has fallen which underscored investor caution as china’s economy cools down. China draws US$ 95 billion in foreign direct investment for the first ten months of 2014 only 1.2 percent down compared to a year earlier.
Foreign direct investment for October is at US$ 8.5 billion up by 1.3 percent compared to the year earlier. Furthermore investment flows into China is use as a gauge of the health of the world economy and is also an indicator on where the capital in flowing into the country. Also data showed that investors were looking into the service industry as China’s manufacturing sector slows down.
The service sector attracted around US$ 53 billion in foreign investment for the first ten months of 2014 which is up 6.6 percent compares to a year ago, and the amount higher than US$ 32 billion that came into the country through the manufacturing industry. South Korea was one of the biggest investors from ten countries in which their investment increased by 26.4 percent based on annual basis and Britain which when up by 32 percent. In contrast to the investment from the United States which fell 16 percent and in the European Union by 23 percent.