Foreign Direct Investment into China has fallen to a 30-year low

Foreign Direct Investment into China in 2023 fell by 82% from 2022. FDI inflow for the year recorded its lowest result since 1993.

• The data was published by the State Administration of Foreign Exchange (SAFE) on Sunday.
• SAFE’s data gauges net flows, and can reflect trends in foreign company profits, as well as changes in the size of their operations in China.

The Chinese government’s (i.e. the Chinese Communist Party) efforts to get overseas companies to return after Covid are faltering. Foreign companies are pulling money out of the country due to geopolitical tensions and higher interest rates elsewhere.

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Coming up from China on Tuesday:

• More on the expectation of an interest rate cut from the People’s Bank of China today

This article was written by Eamonn Sheridan at http://www.forexlive.com.