Impact of 82% Drop in Foreign Direct Investment in China for 2023

Monday, 19 February 2024, 22:26

Foreign Direct Investment into China plummeted by 82% in 2023, marking the lowest level since 1993. The decline reflects challenges for overseas companies amidst geopolitical tensions and higher interest rates globally. Efforts by the Chinese government to attract foreign investments post-Covid are facing setbacks.

Reasons Behind the Drop in Foreign Direct Investment

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

Data Insights from State Administration of Foreign Exchange (SAFE)

SAFE's data gauges net flows, reflecting trends in foreign company profits and changes in their operations in China.

The Chinese government’s efforts to attract overseas companies post-Covid are hampered by geopolitical tensions and higher global interest rates.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Reasons Behind the Drop in Foreign Direct Investment

Data Insights from State Administration of Foreign Exchange (SAFE)

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