Heard on the Street: China’s economy is struggling right now, but one thing not lacking is foreign investment
China’s economy is struggling right now, but one thing not lacking is foreign investment. Keeping that up may help China offset the drag from a slower growing property sector in the future. Foreign direct investment, especially in manufacturing, comes with lots of ancillary benefits, like technology, and is often closely related to export competitiveness.
and fast-growing service sectors with substantial foreign involvement. The nation has also sent strong signals that it would prefer to be a manufacturing—and not services or software—high-tech superpower. And yet, the pattern of FDI into the country shows the opposite pattern: heavy new investment in services and anemic inflows into manufacturing.
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