US Firms Lift China FDI 24.5% as Overall Inflows Drop 10.3%
Updated
Updated · South China Morning Post · May 25
US Firms Lift China FDI 24.5% as Overall Inflows Drop 10.3%
1 articles · Updated · South China Morning Post · May 25
Summary
American firms’ actually utilized investment in China rose 24.5% year on year in January-April, according to China’s commerce ministry, with Beijing saying the total includes inflows routed through third regions such as free trade ports.
China’s broader foreign direct investment picture remained weak: total inflows fell 10.3% to 287.7 billion yuan ($42.4 billion) in the first four months, after a 7.3% decline in April.
Luxembourg, Switzerland and France also posted sharp gains in investment into China, up 110.3%, 60.8% and 58.3% respectively, though the ministry did not disclose actual amounts.
The rebound in US investment came before the two countries’ leaders met earlier this month, after two years in which trade tensions and national-security scrutiny had weighed on cross-border investment.
Chinese analysts said foreign capital is shifting away from saturated traditional manufacturing and toward sectors tied to China’s “advanced productive forces.”