Net foreign direct investment (FDI) into the Chinese mainland plummeted to a 23-year low last year, government data showed Friday, reports Caixin. The $42.7 billion inflow is less than a quarter of that seen in 2022. The latest result was revised up from the $33 billion preliminary number published by the State Administration of Foreign Exchange (SAFE) last month.
The net FDI, measured through China’s capital and financial accounts, reflects monetary flows into and out of the mainland connected to overseas-owned entities and used for investment in assets such as manufacturing and real estate.
A different gauge of overseas investment releases by the Ministry of Commerce shows that total utilized FDI in China tumbled 8% to RMB 1.1 trillion ($156.1 billion) in 2023.