June FDI totaled $12 billion, ministry spokesman Shen Danyang said. Declining investment in China's property sector also was blamed, China's Global Times reported.
FDI in the first six months of 2012 totaled $59.1 billion, down 3 percent from the same period of last year.
The newspaper quoted the U.N. Conference on Trade and Development as saying global FDI is expected to increase at a slower rate to $1.6 trillion this year due to slow global economic growth.
China's GDP growth in the second quarter fell to 7.6 percent year-on-year, the sixth consecutive quarter of a slowdown and the slowest pace in more than three years.
"China's economy will hopefully pick up in the second half of the year, which will boost investor confidence," Shen said.
Biologists detail four new deep-sea 'killer sponges'
Pregnant Mila Kunis wins 'Best Villain' at MTV Movie Awards