So leave or come? China reports on investment growth

UNITED STATES, WASHINGTON (VOP TODAY NEWS) — In parallel, the media reported on the mass exodus of technology companies from the Middle Kingdom. This was stated by Donald Trump.

Despite trade tensions between China and the United States, foreign investment in the Chinese economy in July again show growth, and this clearly contradicts the statements of Donald Trump and many Western media about the mass exodus of investors.

In July, foreign direct investment (FDI) in China increased to $ 8.09 billion, exceeding last year’s result by 8.7%. In June, an increase of 3% was recorded. The volume of FDI in yuan terms during the reporting period increased by 7.3% and amounted to 533.14 billion yuan.

Last month, according to the Chinese Ministry of Commerce, 3,919 new enterprises were registered in which foreign investment was attracted. In January-July, 24,050 enterprises with foreign capital were created in China.

Moreover, the largest increase in infusions is noted in the high-tech industry: the volume of investments grew by 43.1% in annual terms and amounted to 29.3% of the total volume of FDI.

The Ministry of Commerce of the PRC does not report data on investments from the United States. But there is information about other players. So, the key investors are Germany and South Korea.

Their investment increased in the reporting period by 72.4% and 69.7%, respectively. Investments from EU countries in January-July increased by 18.3%, from countries participating in the initiative “One belt – one way” – by 5%.

Meanwhile, no earlier than August 10, US President Donald Trump claimed that “thousands” of companies fled China due to US duties imposed by his administration during the 13-month trade war.

The media also regularly reports on the transfer of production of a company outside the PRC. Bloomberg reports a mass exodus. According to the publication, one of the latest sad news on the list was a message about the transfer of production of HP Inc. Inventec Corp. to Taiwan.

It turns out two sides of the same coin: on the one – many companies really relocate the production of products intended for the United States to Southeast Asia, India, and even Mexico. On the other, they continue to invest in China.

As the deputy chairman of the People’s Bank of China, Pan Gunsheng, who is responsible for financial markets, commented on the situation, FDI in China still has great potential for development, as the country’s business climate has only improved. “Liberalization and simplification of cross-border trade and investment will have positive consequences,” the official added.

At the same time, the Chinese authorities clearly do not consider the departure of some major players to be a tragedy. “It’s just normal business for companies to strive for those regions where costs are lower. This corresponds to the objective laws of industrial development,” Xin Guobin, Deputy Minister of Industry and Informatization of China commented on the situation in July, noting that Beijing was not surprised by the actions of foreign companies and, in general, their number is not so great.


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