China reports surge in long-term investment inflows despite talk of decoupling from US
- China’s foreign investment inflows in September jumped 23.7 per cent from a year ago, Ministry of Commerce says
- Politburo meeting approves Chengdu-Chongqing integration to protect stability of industrial value chain
Foreign direct investment (FDI) inflows into China surged in September by nearly a quarter compared to a year ago, underlining the confidence international investors have in the world’s second biggest economy long-term prospects, despite threats of decoupling from the United States.
FDI inflows into China rose 23.7 per cent to US$14.25 billion last month, according to data released by the Ministry of Commerce on Friday. The growth marked an acceleration from August when China’s FDI recorded year-on-year growth of 15 per cent.
Total FDI inflows into China in the first nine months amounted to US$103 billion, an increase of 2.5 per cent from the same period last year, the Chinese ministry said. In comparison, Vietnam, which is widely seen as an alternative investment destination, attracted US$21.2 billion in FDI in the first nine months of 2020, a drop of 18.9 per cent from a year earlier.
According to China’s commerce ministry, investment inflows into China have accelerated in recent months because economic activity was returning to normal after coronavirus interruptions earlier this year.
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A strong flow of foreign direct investment implies strong trade and economic links between China and the rest of the world, showing its central role in global value chains is likely to continue.
