Rick Li’s Post

FDI News: Foreign investment flows to China decline 20% in January-February- Republic World 🌟 Discover the latest in the world of FDI and Business! Check out this insightful piece. 💡🌍 China foreign investment slows: Foreign investment flows into China contracted by 19.9 per cent in January-February compared to the same period last year, totalling 215.1 billion yuan ($30 billion), data released by commerce ministry showed on Friday. The decline comes amid efforts by the Chinese government to attract foreign firms, despite the downward trend in investment.China's cabinet recently announced new measures aimed at revitalising foreign investment, which include expanding market access and relaxing certain regulations. However, overseas companies have grown increasingly cautious about investing in China, citing concerns over the business environment, an uncertain economic recovery, and escalating geopolitical tensions with Western countries.The abrupt shift in China's COVID-19 containment measures, from stringent controls to sudden relaxation in late 2022, has also contributed to the erosion of investor confidence. Furthermore, ongoing regulatory crackdowns across various sectors, ranging from technology to education, have added to the unease among both domestic and foreign investors, raising questions about policy transparency in China.Gina Raimondo, the US Commerce Secretary, highlighted last year that American businesses had expressed reservations about investing in China, describing the country as 'uninvestible'.In 2023, foreign direct investment (FDI) into China recorded an 8 per cent year-on-year decline.Breaking down the investment figures for the first two months of the year, the ministry revealed that a significant portion, approximately 71.44 billion yuan, or one-third of the total, flowed into China's high-tech industries, including high-tech manufacturing.Despite the overall decline, certain sectors saw positive growth. Foreign investment in China's construction sector surged by 43.6 per cent year-on-year, while investment in wholesale and retail industries experienced a 14.5 per cent increase, according to the ministry's data.(With Reuters inputs) 🔗 [Learn more: https://lnkd.in/ekeBhYg6] Join as a Partner and Professional: FDI Alliance: www.fdialliance.com #FDI #Invest #Trade

Foreign Direct Investment into China Plummets to 23-Year Low #modernbusinessnetwork#modernusinessindia #modernbusinessamerica#modernbusinesseurope #modernbusinessasia  #modernbusinessgulf #modernbusinessgermany#modernbusinessworld #AmericanChamberofCommerce#GermanChamberofCommerce#FDI#MinistryofCommerce

Foreign direct investment in China saw its smallest increase in decades last year, highlighting the challenges facing the nation in attracting overseas funds to support its economy. On the bright side, despite some concerns, German companies invested nearly €12 billion ($13 billion) in China last year, setting a new record. This shows a strong interest in expanding into the world's second-largest economy, even as the EU increases scrutiny over security issues. China's share of Germany's total foreign direct investment rose to 10.3% in 2020, the highest since 2014.

China has announced its commitment to providing equal treatment for foreign companies, aiming to attract more foreign investment and enhance cooperation in its bid to upgrade and fortify its industrial chains. At the China Development Forum in Beijing on Monday, Vice Minister of Commerce Guo Tingting stated, “China will fully guarantee national treatment for foreign companies, so that more foreign companies can invest in China with confidence and peace of mind.” Tap the link in our bio to read more. #China #ForeignInvestment #EqualTreatment #InternationalInvestment #BusinessNews #EconomicDevelopment #TradeRelations #ForeignFirms #InvestmentOpportunity #EconomicPolicy #GlobalBusiness #TradeAgreement #RateCaptain #ForeignInvestors #TradePartnership

https://lnkd.in/gr9EqWgD. Getting and retaining #FDI still a challenge for #China. The usual economic and political suspects at work. For those forward looking, there are new economic and political suspects on the horizon and the rest of the world ain't standing still in attracting FDI from China. Of course, China is part of the story and it is not entirely clear how far they can or are willing to go. #economicgrowth #economicreform #levelplayingfield #marketaccess #geopolitics #DonaldTrump #tradewar #protectionism #economicnationalism #tariffs #USChinarelations #decoupling #derisking #politicalrisk #regulatoryrisk Nikkei Asia

China suffers 56% drop in foreign investments on weak domestic demand Tensions with U.S. and anti-espionage law give multinationals pause Foreign direct investment in China plummeted 56% on the year in the first quarter of this year, according to the official data released Friday, underscoring global businesses' reluctance to pour money into an economy grappling with weak internal demand. Foreign companies made $10.3 billion in direct investments in factory construction and other projects on a net basis during the three-month period, China's State Administration of Foreign Exchange reported. #investment #china #trade #business #internationalrelations #future #US #espionage #fdi #finance

China is becoming a capital exporter with outbound FDI reaching record levels in 2023 since data has been kept since 2003. You won’t read much about this in the mainstream press; it runs counter to the narrative of a collapsing economy evidenced by capital flight (declining foreign investment into China). Recall six months or so ago all the talk was about the 2023 drop in net FDI in China. There was plenty of technical accounting considerations in what was actually going on, but the outbound data clearly points to a new set of dynamics for Chinese industry. #china #fdi

EXCERPTS: China’s State Council released an action plan to further open up the Chinese market to foreign firms after overseas investment fell to record lows last year. The State Council called on local authorities and government departments to come up with timetables and roadmaps to allow foreign investment in more sectors, and loosen visa rules, to make doing business easier in the world’s second-largest economy. The Chinese government has released a number of measures over the past year including a 24-point action plan to boost foreign investment in August. However, global CEOs have complained of promise fatigue and say the risk-reward trade off for investing in China has changed dramatically as concerns grow over the country’s long-term growth prospects. COMMENT: I am still waiting (hoping) for the Third Plenum or will this be eliminated? Constitutionally speaking, it is required to happen at least sometime this year. I don't think Beijing realizes how a perceived erosion of institutional processes effects the mood of foreign players.

My latest with Zhuowen Li on the shrinking FDI inflows in China - According to China's balance of payment data, net FDI inflows in the first half of 2024 turned negative, suggesting foreign firms might have repatriated more earnings back home than adding to new investments in China. This continuous decline in FDI inflows is driven by multiple factors, including geopolitics, divergence in monetary policy paths between China and most other major economies, China's gloomy outlook, and perhaps also the authorities' growing obsession with security. What is making things worse is the authorities' ongoing crackdown on access to Chinese data, which is making it more difficult for investors, both domestic and foreign, to make decisions. Will China's new (and coming) stimulus measures be enough to convince foreign investors to return? https://lnkd.in/ege_ruvz

A good study that addresses the question of the “organic internationalization” of the Chinese economy and its companies. But it only scratches the surface of the subject and remains in the realm of observations and the validation of data, which are themselves subject to caution. In the future, we'll be talking not just about manufacturing, but about services, as the study suggests when it highlights the shift from large-scale, prestige projects to smaller ones creating local jobs. The needs inherent in overseas greenfield investments will generate Chinese ecosystems in all service categories. To find out more about how China's public and private players will play in foreign markets, read the State Council's new directive on trade in services dated September 2, and the attached negative list. China's approach to trade in services duplicates that of manufacturing goods, as it prepares to bunkerize its domestic market for the types of services it will later develop internationally. China calls this new phase of its open door policy, the third of its kind, “unilateral opening” or "high level opening up". Welcome to China's "new economic environment" (pattern) (新发展格局) https://lnkd.in/dbxFDxpu