(Bloomberg) -- Foreign investment into China slowed for a third straight month in March compared to the same period last year, underscoring Beijing’s struggle to attract more overseas funds to boost its economy.

New actually utilized foreign investment into China was 87 billion yuan ($12 billion) last month, according to calculations based on figures provided by the Ministry of Commerce on Friday. That was down 38% compared to the same month in 2023.

Inbound investment for the first three months of the year was 301 billion yuan, down 26% compared to the same period last year, vice commerce minister Guo Tingting said. She attributed the steep fall to the high base of comparison with the January-March quarter of 2023, which saw a record inflow of investment.

China has sought to convince overseas companies to invest in the country since it reopened from years of Covid isolation. But foreign companies have largely held back, citing geopolitical tensions and the country’s uncertain growth outlook.

Read More: British Firms in China Wary to Invest Over Slowdown, Survey Says

A survey of US firms earlier this year showed nearly half of all respondents had no plans to expand their investment in the country, even as some grew optimistic about stabilizing US-China ties.

Beijing has pledged to take steps to create an environment friendly to foreign businesses, although EU and US officials have recently raised concerns that overseas firms are treated unfairly in the world’s second-largest economy.

Read More: China Releases Action Plan to Attract Foreign Investment

--With assistance from James Mayger.

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