Foreign direct investment in China fell to a 25-year low
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Foreign direct investment (FDI) flows to China amounted to $4.9 billion in April-June 2023, according to data from the State Monetary Authority of China. This is the lowest quarterly value on record since 1998. After Chinese FDI reached $101.3 billion in 2022 Q1 (an all-time high of $105.2 billion in 2013 Q4), ), the figure fell sharply in the two subsequent periods: to $38.1 billion in April-June and to $13.1 billion in July-September. In the fourth quarter of last year, FDI growth showed signs of recovery and amounted to $27.7 billion, but already in January-March 2023 it fell again to $20.5 billion.
As follows from the data of the State Statistical Administration (GSU) of the PRC, the PMI index in Chinese industry (compiled on the basis of a survey of purchasing managers) in July amounted to 49.3 points after 49 in July and 48.8 in May. Values below 50 points indicate a slowdown in manufacturing activity. Industry accounts for over 39% of China’s GDP. Cooling is also observed in non-manufacturing sectors: in July, PMI in this area amounted to 51.5 points after 53.2 in June and 54.5 in May.
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