China's FDI declining

China's attracted the highest FDI in the world over the past 2 years, raging up around US%60 billion in 2004. This was way more than FDI in the USA, which was the most favoured country earlier: "FDI flows to the United States fell to US$30 billion, that country´s lowest level since 1992 and only a tenth of their peak in 2000-2001. "

But even FDI to China shows signs of tiring - it grew in total for the first two months of 2005, but in February its "foreign direct investment inflows witnessed a negative monthly growth."

This might be due to the festive season, but let's step back and observe. May be there is more behind.

(By Asia Business Consulting)