This quarterly review is a comprehensive overview of China’s current macroeconomic, outbound and inbound investment situation. This review offers analyses of major economic indicators, overall trends in outbound and foreign direct investment, and discusses major merger and acquisition deals (inbound and outbound) for the first half of 2012. During this period, China’s macro economy exhibited slower but stable growth characteristics. This was supported by a series of government policies and adjustments to assist stability. China’s outbound investment continues to be strong during the first half of 2012, while foreign direct investment declined slightly.