China: World factory pitch calls for adaptive policy, government must keep its policy choices adaptive

Recently the news has come on the internet that for an economy that has been the apple pie of the eye of global investors for multiple decades, China’s loss in foreign direct investment (FDI), in the July- September quarter of 2023 is significant news. For the quarter, it noted an FDI loss of $11.8 billion. FDI (foreign direct investment) refers to the buying of an asset in another country, such that it gives direct control to the purchase of the asset. Here we have more information about the news and we will share it with you in this article, so let’s continue the article.

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As we already mentioned FDI is a shortage of $11.8 billion. It indicates that instead of foreign money entering China to make real assets, overseas drew money out of the country’s previous quarter. This mega turnaround is a first, or at least unseen since 1998 when the country’s forex regulator started compiling this data. This mirrors a process of de-risking international value chains (GVCs) away from China, largely in line with the ‘China Plus One’ strategies embraced by global businesses in response to COVID-19 supply disruptions. Swipe up the next page for more information about the news.

The pandemic revealed over-reliance on Chinese factories as a glaring risk. On another level, it can also reflect geopolitically rupture playing out as a kind of Cold War second, globalization as expected having taken a recent blow from the battle in Europe. The Chinese thrift is in a recession and may remain too weak to get GDP development back near double digits. But then Beijing did itself no favor by taking an absolute turn with business crackdowns. You are on the right page for more information about the news, so please read the complete article.

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Communist China’s financial upgrade started in the late 1970s with market reforms explained by Deng Xiaoping’s famous words on ideology: ” On its part, the US had sprinkled a chance to split labor-rich China away from Soviet influence via trade ties. In all this, India has cleverly set itself as a warm place for the West’s megacorps to diversify their GVCs. India’s FDI inflows in 2020- 21 before slipping 1% the following year and then 22 percent to $46 billion in 2022-23. India pulled almost $11 billion in the quarter finished June a 34 per cent year-on-year drop. Here we have shared all the information that we had. Stay tuned to us for more updates.

Mark
Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.