Foreign Investors Pulling Out of China... 30% Drop in Foreign Investment

[Image source=Reuters Yonhap News]

From January to July this year, foreign direct investment (FDI) in China amounted to 539.5 billion yuan (102.13 trillion won), marking a 29.6% decrease compared to the same period last year, the Chinese Ministry of Commerce announced on the 16th.

FDI in China is experiencing an increasingly steep decline. The FDI volume from January to February this year fell 19.9% compared to the same period last year, and from January to April, it decreased by 27.9% year-on-year. In the first six months of this year, China's FDI performance further worsened, dropping 29.1% compared to the same period last year.

Earlier, Bloomberg News projected on the 12th that pessimism about the Chinese economy would deepen, leading to the first-ever negative FDI growth in China this year. Global companies such as Volkswagen and L'Or?al have also stated that local business is very challenging due to a significant reduction in Chinese consumer spending.

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