China Jan-Sept FDI slips

The same slowdown in overseas markets led the Ministry of Commerce to warn on Friday that exports, too, face an uphill battle despite rosier-than-expected September data.

China drew $83.4 billion in foreign direct investment between January and September, with September's inflow alone down 6.8 per cent on year-ago levels at $8.4 billion, the Commerce Ministry said on Friday.

China's FDI inflows have entered a sort of adjustment period, as the total amount dropped over past months, but it was only a slight drop, Commerce Ministry spokesman Shen Danyang said.

Meanwhile, the quality and structure of investment inflows have improved, therefore, we can say such an adjustment is normal and positive.

The shrinking FDI figure followed a raft of economic activity indicators released on Thursday that pointed to a mild recovery in the growth momentum in September, although the economy slowed for a seventh straight quarter in the July-September period.

Earlier data showed China's foreign exchange reserves, the world's largest, rose to $3.29 trillion at the end of September from $3.24 trillion at the end of June. The $50 billion rise came after a $65 billion drop in Q2.

Uncertain global demand

Despite evidence of corporate caution in the face of uncertain global demand, China's trade showed signs of improvement last month, with exports rising at twice

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