Foreign direct investment (FDI) has been declining for eight consecutive months.  This is the first time that consecutive FDI decline has happened since the Asian financial crisis in 1998.

China's FDI in May dropped 17.8% from a year earlier to $6.38 billion, and the number of newly approved foreign enterprises contracted by 32% to 1,649, according to the release by the Ministry of Commerce on Monday. 

From January and May, the FDI fell 20.4% year-on-year to $34.05 billion and newly approved foreign enterprises dropped by 33.8% to 7,890.

The drop of FDI in China is consistent with the overall global trend.  The financial crisis is taking a toll on every country.  It is forecast than the global FDI will drop 30-40% this year.  Relatively, China is still the top choice for foreign investors.