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China's 2020 FDI inflow expected to hit record high, surpassing the $140 billion mark

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China's 2020 FDI inflow expected to hit record high, surpassing the $140 billion mark
10:29, 26-Dec-2020
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Foreign direct investment (FDI) into the Chinese mainland, in actual use, is tipped to hit a record high by surpassing the $140 billion mark, the Ministry of Commerce (MOFCOM) said Friday.

Preliminary estimates indicate the second-largest economy's FDI inflow will reach roughly $690 billion during the 13th Five-Year Plan period (2016-2020), outweighing $60 billion earned during the 12th Five-Year Plan period (2011-2015), MOFCOM said.

The country's FDI inflow ticked up for eight straight months in November. In the first 11 months of 2020, FDI climbed by 6.3 percent from the year-earlier period.

China served as the world's second-largest recipient in the 2017-2019 period, with FDI inflow ascending by 5.8 percent from the year-earlier period to reach 941.5 billion yuan ($143.9 billion) in 2019, next only to U.S. FDI inflow of $251 billion.

 
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what happen to all those news about decoupling shit china doomed everybody leaving china in droves to india and elsewhere? :D

Like Japan and Germany leaving to India.

Looks like China is one of the few viable investment destinations.

Investors will go to places they see as stable and safe.

India is hardly stable and safe.

Vietnam is stable, but underdeveloped. It gets low-end investment.
 
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Like Japan and Germany leaving to India.

Looks like China is one of the few viable investment destinations.

Investors will go to places they see as stable and safe.

India is hardly stable and safe.

Vietnam is stable, but underdeveloped. It gets low-end investment.
FDI mainly for expanding their business in CN market, so it ( FDI) doesn't help poor Cnese. 600 millions Cnese still earning less than 140dollars per month

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A senior official with the Chinese Commerce Ministry said many foreign companies adopted a "wait and see" attitude in the early stage of the pandemic, but they are now expanding their investments. Companies like BMW, Siemens, LG, and Toyota plan to make big investments in China.
 
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FDI mainly for expanding their business in CN market, so it ( FDI) doesn't help poor Cnese. 600 millions Cnese still earning less than 140dollars per month

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A senior official with the Chinese Commerce Ministry said many foreign companies adopted a "wait and see" attitude in the early stage of the pandemic, but they are now expanding their investments. Companies like BMW, Siemens, LG, and Toyota plan to make big investments in China.

Some expanding, some starting business. Most in value-added sectors. Japanese companies have been active.

I believe currently only exporting car makers such as Subaru and Suzuki will go, as well.
 
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Some expanding, some starting business. Most in value-added sectors. Japanese companies have been active.

I believe currently only exporting car makers such as Subaru and Suzuki will go, as well.
Actually its the bad news for CN in long term, CN is losing her economy to foreign companies bcs CN badly need money during trade war.

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China will let foreign automakers from Volkswagen AG to Ford Motor Co. own more than 50% of local ventures, removing a two-decade restriction and giving a boost to global companies seeking to capture a greater share of the world’s largest car market.

The move may help diffuse tensions between China and the U.S. after President Donald Trump’s intensified rhetoric risked an all-out trade war. Companies from Daimler AG and BMW AG to General Motors Co. and Toyota Motor Corp. are set to find it easier to manufacture and do business in China, while local makers will be under increased pressure to speed up the building of their own brands.

“In a decade, foreign carmakers will gradually become all independent and Chinese companies will lose the cash flows from the joint ventures,” said Yale Zhang, an analyst with Automotive Foresight Co. in Shanghai. “Foreign carmakers will be happy as they won’t have to share 50% of the profits with their Chinese partners.”

 
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Actually its the bad news for CN in long term, CN is losing her economy to foreign companies bcs CN badly need money during trade war.

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China will let foreign automakers from Volkswagen AG to Ford Motor Co. own more than 50% of local ventures, removing a two-decade restriction and giving a boost to global companies seeking to capture a greater share of the world’s largest car market.

The move may help diffuse tensions between China and the U.S. after President Donald Trump’s intensified rhetoric risked an all-out trade war. Companies from Daimler AG and BMW AG to General Motors Co. and Toyota Motor Corp. are set to find it easier to manufacture and do business in China, while local makers will be under increased pressure to speed up the building of their own brands.

“In a decade, foreign carmakers will gradually become all independent and Chinese companies will lose the cash flows from the joint ventures,” said Yale Zhang, an analyst with Automotive Foresight Co. in Shanghai. “Foreign carmakers will be happy as they won’t have to share 50% of the profits with their Chinese partners.”


All investment is subject to national laws, just as in any other place.

Investment is not an easy decision. For many, it takes years to turn profitable. Some eventually lose and leave.

Now, CN market is extremely competitive.

Uber came Mainland China, lost to competition, and left.
 
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All investment is subject to national laws, just as in any other place.

Investment is not an easy decision. For many, it takes years to turn profitable. Some eventually lose and leave.

Now, CN market is extremely competitive.

Uber came Mainland China, lost to competition, and left.
CN cars suck, can't compete wt EU-JP cars, so they will control CN markets soon, that's why FDI still flowing into CN.

Otherwise, less FDI will come, EU-JP car companies won't waste their money in CN but move to VN like Samsung instead.
 
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CN cars suck, can't compete wt EU-JP cars, so they will control CN markets soon, that's why FDI still flowing into CN.

Otherwise, less FDI will come, EU-JP car companies won't waste their money in CN but move to VN like Samsung instead.

Especially in EV, China has good brands. In traditional cars, West and Japan have an advantage. But, China has on par makers although the trend is mostly set by Japan and Germany.

Samsung moved low-end production to Vietnam. Its high-end investment stays.
 
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Especially in EV, China has good brands. In traditional cars, West and Japan have an advantage. But, China has on par makers although the trend is mostly set by Japan and Germany.

Samsung moved low-end production to Vietnam. Its high-end investment stays.
Bcs CN still beg for Samsung chips due to US ban, that's why that investment still staying in CN. If CN stop buying, Samsung chip factories will quit CN.

Same problem for EU-JP investments, bcs Cnese keep buying EU-JP cars and CN Gov't has no choice but allowing them taking control in car market, so they put more investments, otherwise they will quit.
 
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