China's 2012 FDI declines 1.91%

China's Foreign Direct Investment (FDI) environment is complicated this year, due to the global economic recess and rising domestic production costs, Vice Minister of Commerce Wang Chao said. FDI over the January-May period was down 1.91% from a year-earlier to $47.11 billion, according to ministry data. Meanwhile, Wang expected China's FDI to show some improvement this year. "For the medium and long term, China still has the edge to attract foreign investment," he said. In May, FDI rose 0.05% from a year earlier to 9.23 billion US dollars, reversing a declining trend from the previous six months, china's news agency (XINHUA) reported. "The Chinese government has made great efforts to improve its investment environment and most foreign companies in China are confident about the Chinese market," Wang said. A recent report released by the United Nations Conference on Trade and Development (UNCTAD) on July 6, considered China the most favored investment destination globally, followed by the US and India.