Foreign direct investment in China has plunged by double-digit amounts in every month since May and fell by 34% in September, according to a report by the Financial Times, which said that calculations based on Commerce Ministry data compiled by Wind showed FDI fell by over a third to 72.8 billion yuan ($10 billion) in September, which was the “biggest decline since monthly figures became available in 2014.”

The country saw a record $189 billion in FDI in 2022, but geopolitical tensions and western calls to “de-risk” supply chains had driven a decline in foreign investment that was at a two-decade low, the report said, noting that higher interest rates in the US created an incentive for US companies to “re-shore” working capital from China. Data from Prequin also showed that venture funds and private equity groups investing in China had only raised $5.7bn this year, which was only a quarter of last year and a fraction of the figure raised in 2021.

Read the full report: The FT.

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


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