China's investment of international investments are decreasing - Beijing can create the turn

China's investment of international investments are decreasing - Beijing can create the turn

In January 2025, foreign direct investment in China fell to the lowest level in four years, since the second largest economy in the world is faced with a number of challenges.

decline in foreign direct investment

The Chinese Ministry of Trade reported that last month 97.6 billion yuan ($ 13.4 billion) were mobilized in foreign direct investments, which corresponds to a decrease of 13 % compared to the previous year.

The weak annual start follows a significant decline in the entire foreign direct investment (FDI) by 27.1 % to a total of 826.3 billion yuan ($ 113.4 billion) in 2024, which is the lowest value since 2016. "The decline is smaller compared to the previous year, but it continues to show a downward trend," said Ling Ji, the deputy minister of commerce China, during a press conference , in which several government departments have a 20-point Action Plan presented to the extraction of foreign capital.

obstacles for investments

ling cited the slow global economic relaxation, rising geopolitical tensions and protectionism as reasons for the dwindling foreign investment. Changes in the strategies of multinational companies have also led to a decline in foreign investments in important Chinese industries such as the automotive, mechanical engineering and clothing industry.

weakness of the real estate sector

The stagnating real estate sector pulls the economic growth down and stresses consumer expenses. In sectors such as Automobiles and consumer goods are faced with intensive competition with increasingly popular national champions, which is due to technological advances and a growing national consciousness.

China's strategies for the recruitment of foreign investments

China has repeatedly tried to gain foreign investments that are considered an important engine for economic growth. The new action plan provides to open the economy further, improve regulatory support and attract long -term investments in listed companies in China. Beijing has promised to expand a pilot program to grant full foreign property in areas such as telecommunications, healthcare and education. It has also announced that it would develop new policies to promote reinvestment of foreign companies in the country, as well as to cancel restrictions on the use of domestic loans by foreign companies.

effects of geopolitical tensions

The deduction of foreign capital is an indicator of the country's in -depth economic problems. In view of the slow growth, the challenges for China's economy will most likely increase, which means that only a few countermeasures are available to react to a possible second term of trump.

consequences of US trade policy

Since returning to office, the US President has not lost time to re-infect old trade conflicts. At the beginning of this month Rel = "NOFOLLOW" TARGET = "_ blank" https://www.cnn.com/2025/04/business/china-us-trade-retaliation-hnk-intex.html "> Targeted economic measures reacted. Observers consider it possible that both sides could negotiate a more comprehensive trade agreement at negotiating tables.

USA-Chinese business relationships in focus

a the american chamber of commerce in China, which was published last month, showed that more than half of the US companies are expecting a deterioration in bilateral relationships, with a record of 30 % already considering or thinking about deducting their operations from China.

increasing political tensions in China have reduced the attractiveness of investments in the country. Foreign companies have unsettled a number of tighter laws on national security and counter -espionage that have been issued in recent years. The arrest of foreign managers and employees Has triggered in the business world