BEIJING -- China's actual use of foreign investment plunged 32.67 percent year on year to 7.54 billion U.S. dollars in January, a Ministry of Commerce (MOC) official said here Monday.

A port area is seen in this file photo

Foreign investment use has seen consecutive falls in China since October, when a 2.02-percent annual drop was recorded.

The week-long Chinese New Year holiday in late January also affected the monthly foreign investment figure, he said at a press conference.

The slump in January was slightly slower than the 36.52-percent decrease in November, but the whole-year situation would still be grim, said Zhang Yansheng, head of the International Economic Research Institute under the National Development and Reform Commission.

"Foreign investors are withholding their money because of the spreading global financial crisis," said Zhang. "China won't be an exception in this downturn."

The upward trend would experience a turning point this year even without the global financial crisis, as China's adjustment to its foreign investment policies took effect, said Zhang.