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China’s foreign direct investment has seen a record-breaking decline, dropping to its lowest level since 1993. The plummet comes in light of sluggish economic growth and escalated interest rates across international markets.
The country’s direct investment liabilities, comprising investments in its capital markets and foreign business earnings held within China, escalated by $33 billion in 2023.
According to data released by the State Administration of Foreign Exchange, foreign companies made a net investment of $22 billion in China in 2023, marking an astonishing 82% decrease from 2022.
This marks the second consecutive year of decline, and sheds light on the enduring impact of the COVID-19 lockdowns last year and China’s gradual economic recovery.
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