Inbound investment in China plummeted to a four-year low in January, as the world’s second-largest economy grapples with a flurry of headwinds.

The Ministry of Commerce reported on Wednesday that 97.6 billion yuan ($13.4 billion) in foreign direct investment was utilized last month, a 13% drop from the same period last year.

The weak start to the year came after a steep plunge of 27.1% in total annual foreign direct investment (FDI) last year to 826.3 billion yuan ($113.4 billion). It was the lowest figure since 2016.

Ling attributed the sluggish foreign investment to a slow global economic recovery, rising geopolitical tensions and protectionism. Shifts in multinational businesses’ strategies have also led to a decline in foreign investment in China’s key industries such as automotive, machinery and apparel, he said.

The sputtering property sector has dragged down economic growth and weighed on consumer spending. At the same time, in sectors such as automobiles and consumer products, foreign brands face intense competition from increasingly popular national champions due to technological advancement and rising patriotic sentiment.