China Dismisses Rumors of Massive Relocation of Foreign Businesses

BEIJING, Jan. 18 (Xinhua) -- Despite the drop in foreign direct investment (FDI) in China in 2012, the Ministry of Commerce dismissed rumors of massive relocation of foreign businesses.

The ministry said at a monthly news conference on Wednesday that China used 11.7 billion U.S. dollars of overseas investment in December, down 4.5 percent year on year.

Total FDI into China in 2012 declined 3.7 percent from a year earlier to 111.72 billion U.S. dollars, according to ministry spokesman Shen Danyang.

The decline is in line with market anticipation as economic recovery all around the world faltered last year.

Shen said China strives to stabilize and improve the quality of FDI in 2013, adding that many international companies remain upbeat about investment environment in China.

"China's economic growth will be generally sound in 2013," Minister of Commerce Chen Deming said earlier in a meeting with large foreign enterprises investing in China.

He said that China will continue to optimize the foreign investment environment, including protection of the intellectual property rights and software legalization.