China suffers 56% drop in foreign investments on weak domestic demand

BEIJING -- Foreign direct investment in China plummeted 56% on the year in the first quarter of this year, according to the official data released Friday, underscoring global businesses' reluctance to pour money into an economy grappling with weak internal demand.

Foreign companies made $10.3 billion in direct investments in factory construction and other projects on a net basis during the three-month period, China's State Administration of Foreign Exchange reported.