Foreign Direct Investment in China Shrinks Nearly 20 Percent

Experts say the CCP’s new action plan to attract foreign investment won’t be effective as the root cause is the regime and its politics.

People walk between buildings at a shopping mall in Beijing on Oct. 18, 2018. Greg Baker/AFP via Getty Images

Foreign investment continues to withdraw from China amid its slumping economy, despite that the ruling Chinese Communist Party (CCP) has put out new incentive measures.

The CCP’s Ministry of Commerce released new data on March 22, showing that foreign direct investment flowing into China from January to February was 215.1 billion yuan ($30 billion), a fall of 19.9 percent year-on-year and the eighth consecutive month the figure has fallen. The decline was significantly larger than the number released in January, an 11.7 percent fall from the same time last year.