China Foreign Investment Posts Record Slump as Covid Zero Ended
- Inbound FDI drops 29% in December after 33% fall in November
- Covid Zero, chaotic reopening may have discouraged investment
This article is for subscribers only.
Investment into China slumped in the final two months of last year by the most on record as the government made its chaotic exit from Covid Zero and infections spread across the country.
The 76.6 billion yuan ($11.3 billion) in actually utilized new foreign direct investment in December was almost 29% lower than the same period a year earlier, according to Bloomberg calculations based on data from the Ministry of Commerce. That followed a 33% drop in November, the largest fall in data going back to 2015.