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BEIJING, April 15 (Reuters) - China drew $21.8 billion in foreign direct investment (FDI) in the first quarter, 20.6 percent less than in the same period in 2008, the Commerce Ministry said on Wednesday.
The ministry released the figure at a news conference at which it also said the trade environment was still challenging and that the government would lend more support to exporters.
FDI in March alone was $8.4 billion, down 9.5 percent from the same month in 2008.
It was the sixth straight month in which FDI inflows fell from their year-earlier level, though the rate of decline was more gradual than in the first two months of 2009. FDI inflows were down 15.8 percent in February from a year earlier and 32.6 percent in January.
"Stable FDI growth is very important for China's stable economic growth, especially for increasing employment and boosting foreign investors' confidence," said ministry spokesman Yao Jian.
He noted that although foreign-invested companies comprise just 3 percent of the overall number of businesses in China, they account for 35 percent of industrial output and 11 percent of urban employment.
China attracted a record $92.4 billion in non-financial FDI in 2008, an increase of 23.6 percent from 2007.
Inflows have surged since the country joined the World Trade Organisation in 2001, but have weakened in recent months as the global economic slowdown has hit investment flows.
China's exports and imports have also suffered, falling in March from year-earlier levels for the fifth month in a row. Exports were down 17.1 percent from March 2008, better than February's 25.7 percent slump.
"We need to continue cleaning up and changing our trade policy, strengthening support for exporters and importers and maintaining stable growth in trade," Yao said.
To support exporters, China has raised value-added tax rebates on exports several times since the middle of last year, covering products from textiles to toys and metals. The central bank has also effectively halted the yuan's rise against the dollar since July, giving exporters some breathing room. (Reporting by Langi Chiang; Editing by Ken Wills)