--Lagging western economies lead to decelerating FDI--

China’s Ministry of Commerce said on Dec. 30 that the outlook for foreign investment this year is “not optimistic.” Foreign direct investment in China fell for the second straight month in December 2011 as the ongoing crisis in developed western economies has decreased companies’ appetite for further investments.

Investment from overseas fell 12.73 % to $12.24 billion last month year-on-year, the Ministry of Commerce said in a statement in Beijing. For the full year, spending still rose 9.72 % to a record $116 billion, the data showed. Investment fell 9.8 % in November 2011, the first decline since 2009.

China announced amendments to policies to attract foreign funds last month, changes that may weigh on spending in some industries this year. The ongoing European debt crisis and anticipated weaker growth in the U.S. this year may lead to a large capital withdrawal from China.