Connect with us

China

US investment in China down 28% as FDI grew double-digit

US investment from January to April decreased to $1.03 billion and the number of US firms setting up in China also fell by 3.85 percent to 475.

In contrast, European Union investment rose by 23.42 percent to $2.64 billion. Investment from the Asia-Pacific region, including Japan, South Korea and Singapore, registered growth of 31.23 percent to $32.88 billion.

Boris Sullivan

Published

on

China Us Flags

US investment in China dropped sharply by 28 percent, while foreign direct investment (FDI) maintained double-digit growth from January to April, the Ministry of Commerce of China said.

Loading...

Economists said they believed the US investment decline is temporary, and the Chinese economy, over the long term, will provide US companies with increased investment opportunities.

US investment from January to April decreased to $1.03 billion and the number of US firms setting up in China also fell by 3.85 percent to 475.

In contrast, European Union investment rose by 23.42 percent to $2.64 billion. Investment from the Asia-Pacific region, including Japan, South Korea and Singapore, registered growth of 31.23 percent to $32.88 billion.

The ministry said that FDI for April rose by 15.21 percent, from a year earlier, to $8.46 billion, the fourth month that FDI witnessed double-digit growth this year.

China Us Flags

US investment from January to April decreased to $1.03 billion and the number of US firms setting up in China also fell by 3.85 percent to 475.

“US investment could drop further over the short-term,” Song Hong, head of the Department of International Trade at the Chinese Academy of Social Sciences, said.

Song attributed this to a decline in US manufacturing, a key component of US investment, following the global financial crisis. He also said that with the recovery in the US economy, businesses that had invested in China were returning to the US market.

But others cited rising labor costs as a reason.

“We cannot ignore the fact that investment into China from developed nations, including the US, is slowing thanks to China’s rising labor costs,” said Zhang Yansheng, director of the Institute for International Economic Research under the National Development and Reform Commission.

US investment in China in 2010 grew by 13.31 percent year-on-year, compared to 31 percent for its total overseas investment, according to the United Nations Conference on Trade and Development.

Yuan Gangming, a researcher at the Center for China in the World Economy at Tsinghua University, said “the US is much too reliant on China” for investment to drop over the long term.

But US investors “probably have complaints, such as barriers”, he said.

In a survey of its member companies released last month the US Chamber of Commerce in China cited “bureaucracy, lack of management, ambiguous laws and infringement of intellectual property rights” as major challenges facing US firms here.

via US investment in China down sharply as FDI rises – People’s Daily Online.

China

Clear skies over Asia’s new foreign investment landscape?

East Asia Forum

Published

on

Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.

Loading...
(more…)

Continue Reading

China

Will Myanmar’s coup help China influence ASEAN?

The Myanmar crisis is becoming increasingly tragic, with the military’s use of lethal force now killing over 60 protestors.

Avatar

Published

on

On 16 January 2021, Chinese Foreign Minister Wang Yi concluded a visit to four ASEAN countries. One destination was Myanmar, the upcoming country coordinator of the ASEAN–China dialogue and now centre of international attention after the country’s military seized power.

Loading...
(more…)

Continue Reading

China

Rapid growth in China post-COVID makes it ripe for investment

Being “first in and first out” of COVID-19, China is the only country among the G20 that is thought by the Organisation for Economic Co-operation and Development (OECD) to have increased GDP in 2020.

Avatar

Published

on

China’s economy rebounded sharply.

In January 2020 as the world began to learn of COVID-19, many market observers predicted a challenging year for Asia. While there continue to be headwinds from the health and economic crisis, Asia, and China in particular, has demonstrated comparatively advantageous resilience.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,079 other subscribers

Latest

Trending