Foreign direct investment into China plummeted at the start of the year when coronavirus emerged within its borders. But its rapid recovery from the pandemic, as well as the chaos the virus has wrought elsewhere, is now encouraging a flood of money into the country, reported the Financial Times.
Official data shows that foreign direct investment in China rose in October for the seventh straight month, jumping 18% year-on-year to RMB 81.9 billion ($11.8 billion).
Last month Zong Changqing, an official at the Chinese commerce ministry, said investors saw the country as a “safe harbor”.
“What it’s showing is China is an attractive investment location in the same way it’s attractive for portfolio flows,” said Alicia Garcia-Herrerro, chief economist for Asia-Pacific at Natixis. “Overall its relative growth is better and its return is higher.”