Direct Foreign Investment in China Declines

Foreign direct investment in China in May decreased 6.9% from a year earlier to $3.17 billion and is expected to continue to drop throughout the year as the effects of Asia’s financial crisis reach China, an official newspaper reported. The drop for May followed a 19% plunge in April from a year ago. The region’s financial woes have left China’s Asian investors--Hong Kong, Japan and Taiwan--with fewer assets to invest. Nevertheless, China expects to attract substantial foreign investment as it spends a planned $1.1 trillion on infrastructure in the next three years.