China has attracted only 8.6 billion USD in foreign direct investment in May 2014. This is the lowest level for the latest 16 months, and the reason is into the somewhat slower economic growth of the country. The decline of the foreign investment in the country is within 6.7% compared to May 2013.
The expansion of the Chinese economy began to slow until 2010. Then the growth of the gross domestic product (GDP) was within 10.4%. Since then, however, these rates decreased continuously, as in comparison in the first quarter of 2014 the Chinese economy registered a growth of 7.4% compared to growth of 7.7% in the previous quarter. The annual target of the government for 2014 GDP growth is within 7.5%.
The foreign investment projects are usually “green” building new plants, as well as purchases and joint ventures between foreign and Chinese companies. In the recent months, however, there is a reversal of the government to the country and experience to be strengthened domestic demand. In April, the government announced that it would cut taxes for small businesses and accelerate the construction of large infrastructure projects in China.