Foreign Direct Investment

Foreign direct investment in China falls to 30-year low

Foreign direct investment in China falling to a 30-year low did not come as a surprise to me. The numbers tell a stark story – a drop from 344B in 2021 to 33B in recent years is a significant decline. While comparing this to the 30B that Canada received in the first half of 2023, we can see a clear trend in decoupling from China. This shift is not just a matter of economics; it reflects a strategic move to distance oneself from a country that has not been a fair player on the global stage.

One critical factor contributing to the decline in foreign investment in China is the shift in production costs globally.… Continue reading