China Foreign Investment Falls as Japan Spat Threatens Trade

Foreign direct investment in China fell in August for the ninth time in 10 months and the government indicated a diplomatic spat with Japan will hurt trade, adding to restraints on economic growth.

Spending declined 1.4 percent from a year earlier to $8.33 billion, the ministry said in Beijing today. Shen Danyang, a ministry spokesman, said at a briefing that the dispute over islands claimed by Japan and China will “definitely” have a negative impact on trade, after protesters attacked Japanese cars and shops across China.