From 2006 to 2007 Investment flows between China and the EU dropped hugely? Does anyone know why?

Question

Foreign direct investment (FDI) from the EU into China dropped sharply from six billion euros ($9.3 billion) in 2006 to 1.8 billion euros last year, according to Eurostat, the EU's statistics bureau.

Meanwhile, Chinese investment in the EU also decreased significantly from 2.2 billion euros in 2006 to merely 0.5 billion euros last year when FDI into the EU from the rest of the world increased by 89 percent, from 169 billion euros to 319 billion euros.

Answer 1

There was an altercation between the two over textiles. European laborers are being ditched because China offers less expensive textiles. EU wants to decrease textile imports from China because local textile manufacturers are going or near bankcruptcy. China, of course, raised its objections to that plan, and thus, a significant decrease of investments were seen during those times.