After years of skyrocketing growth in inward investment into China, the pace may be slowing. Confirming other reports of a slight slowdown in Chinese FDI, IBM-Plant Location International’s latest Global Investment Alert notes that China is experiencing a drop in inward investment.

The alert presents worldwide corporate location trends up until mid-2005. Among the key findings was a small decrease in global investment in the first half of 2005 (unlike the increase that occurred in the first half of 2004). In line with this global trend, China is not continuing its strong performance of 2004, though it and India attracted the largest amounts of foreign investment during the time period.

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China attracted just over 400 projects in the first half of last year, compared with 500 in the first half of 2004.