Official figures show that China’s foreign direct investment (FDI) in the latter half of the previous year was merely $42.5 billion, which is a 73% decline and the most significant drop since 1999. On the other hand, the average FDI inflows into China during the first half of the year from late 2020 to early 2022 were $160 billion. In addition, Chinese companies’ foreign direct investment rose by 21% to $84.2 billion.
Investment in Southeast Asia on the rise
Nikkei Asian Review reports that investment in developing economies in Southeast Asia has risen due to the outflow of foreign direct investment (FDI) from China. The Ministry of Planning and Investment in Vietnam stated that FDI projects have disbursed approximately $22.4 billion by December 20, 2022, which is a 13.5% increase compared to the same period in 2021.