Foreign firms' direct investment in China rose last year to the lowest level since the early nineties, highlighting the challenges the country faces as Beijing seeks more foreign investment to help its economy.
China's direct investment commitments in its balance of payments rose by $33 billion last year, down82 percent from 2022, according to data from the State Administration of Foreign Exchange (SAFE).. This measure of new foreign investment in the country – which records cash flows linked to foreign-owned entities in China – fell to its lowest level since 1993.
The data shows the impact of Covid lockdowns and last year's weak recovery. Investment fell in the third quarter of 2023 for the first time since 1998. Although it recovered slightly and returned to growth in the fourth quarter, new funds of $17.5 billion in that period are still one-third lower than the same period in 2022.
Source (Al-Arabiya.net Website, Edited)
