In  China foreign direct investment fell for a tenth straight month in July as companies stalled expansion plans amid the global financial crisis.

Investment declined 35.7 % from a year earlier to $5.36 billion, the Commerce Ministry said at a briefing in Beijing today. That compared with a 6.76 % drop in June.

The situation for foreign direct investment in China remains “severe” even as “positive signs” have emerged in the past two months, Vice Commerce Minister Fu Ziying said last week.

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