Economic figures released by the Ministry of Commerce show foreign direct investment in China fell in March, the first drop in more than a year. Analysts say the decline reflects challenges overseas investors are facing in an increasingly sophisticated environment.

China attracted more than 12 billion U.S dollars in FDI last month, down 1.47 percent compared with the same time last year. More than half of the FDI went into China’s service sector, which is up more than 20 percent from a year earlier. Investments from most Asian countries maintained steady growth, while investments from Japan and the European Union dropped significantly. As for trade figures.

Combined exports and imports reached 5.9 trillion yuan, down 3.7% compared to the same period last year. Export volume reached 3 trillion yuan, declining by 6.1%. The drop in China’s total trade volume has caused concern over the growth prospects of its economy.

But Spokesman from Ministry of Commerce, Shen Danyang, says trade statistics are likely to improve after May.

"With the slow recovery in developed economies and weak emerging economies, we remain cautious about trade for the entire year. But we also see many positive factors. Even though we saw some very disappointing trade figures in the first quarter and that may extend to April, we are confident that we can reach our growth target for the entire year." Shen said.

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