The World

American investment in China has dropped by 18 percent in the first 10 months of this year, but the government says there's been no "massive retreat" for US investment in China.

Official Chinese media on Wednesday reported on Ministry of Commerce figures showing the stark decline in US investment here compared with the same period last year. But in a news conference, a ministry spokeswoman said the downward trend is not huge change, but indicates underlying problems with the American economy and China's own decisions to focus on domestic consumption. In recent months, China's manufacturing has declined and producers are closing at a rapid rate as the country tries to move away from basic production as an economic pillar.

The ministry also said it expects a major decline in China's trade surplus with the United States this year.

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