Nomura On China's FDI

I read the "New York Morning Comment" by Nomura today, and this comment on China's FDI (Foreign direct investment) is somewhat disturbing:

China's FDI inflows fell 20.3% y-o-y in Jan-July to USD48.3bn, after a 17.9% drop in the first six months of this year. In the month of July alone, FDI was down 35.7% y-o-y, marking the tenth straight month that FDI has fallen from year-earlier levels. Not only in China, but across Asia, FDI inflows have weakened, reflecting substantial overcapacity in the global economy.

Let's go for some additional investments in capacity?