China’s government data show foreign investment into the economy grew by almost a fifth this year, a feat highlighted by officials as evidence global companies are resisting calls from US and European politicians to decouple from the country.
Yet, a look below the headline figure of 17.3% expansion in the first seven months of the year shows a less flattering picture. Much of the investment into China actually comes from Hong Kong, and is likely because mainland companies based there are routing funds through the city in a circular journey that’s called “round-tripping.”
