Direct investment from foreign companies in China last year fell by more than 80% from the previous year to the lowest level in 30 years. With the prolonged slump in the real estate market increasing uncertainty about the economic outlook, the decline in investment is becoming clearer.
According to balance of payments statistics released by the State Administration of Foreign Exchange of China, direct investment from foreign companies in the past year decreased by 82% from the previous year to $33 billion, or over 4.9 trillion yen in Japanese yen. Ta.
This is the second consecutive year that direct investment from foreign companies has declined, and it is the lowest level in 30 years since 1993.
This is due to growing uncertainty about the future of the economy due to the slump in the real estate market, tightening restrictions on foreign companies such as the enforcement of the revised anti-espionage law, and the US government's concerns over cutting-edge technologies such as semiconductors. This appears to be due to the ongoing conflict with the government.
A survey released in January by an organization made up of Japanese companies expanding into China found that nearly 50% of member companies plan to reduce investment in China, making it clear that investment by foreign companies is declining. I am.