Chart of the Day: Foreign Direct Investment in China Hits Record
China is attracting a flood of foreign direct investment (FDI) as the world’s second-largest economy continues its comeback from the fallout of its Covid-19 epidemic.
Last year, China’s utilized FDI, excluding investments in banking, insurance and securities, rose 4.5% to a record $144.4 billion, accelerating from 2.4% growth in 2019, according to data (link in Chinese) released Wednesday by the Ministry of Commerce.
China’s single-month utilized FDI stopped shrinking year-on-year at the start of the second quarter of 2020 as the economy got back on its feet with the help of government stimulus and relief measures. The pandemic, however, has continued to disrupt much of the rest of the global economy.
China’s GDP grew 2.3% last year, likely becoming the only major economy to manage an expansion for the year. The country’s fourth-quarter GDP grew 6.5% year-on-year, gaining momentum after its record 6.8% contraction in the first quarter.
The rebound of FDI is expected to support the government’s long-term goal of boosting the services sector, into which nearly 80% of last year’s utilized FDI flowed.
Contact reporter Tang Ziyi (email@example.com) and editor Michael Bellart (firstname.lastname@example.org)
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