China sees for the first time decline in Foreign Direct Investment – a changing trend for India and China?
Babu Ghanta
Aug. 10, 2005

India and China may be seeing for the first time a systematic decline in Foreign Direct Investment and outsourcing. For India the effect will come with a lag or delay but China is seeing a different tone in the market place.

China's trade surplus is expected to shrink from $39.6 billion in the first half of 2005 to $30 billion for the second half of the year, Chinese press reported Aug. 9, citing a report from the State Information Center. Exports are predicted to grow only 22 percent, down from 32.7 percent, and imports are expected to increase from 14 to 18 percent. The report cites the revaluation of the renminbi, the slowdown in the global economy, and a decline in foreign direct investment to China as possible contributing factors to the fall in export growth.

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