While #China’s #ODI once grew faster than #FDI shortly after the 811
exchange rate reform in 2016,capital inflow accelerated until mid-2018 thanks to
a stabilizing #economy.But FDI has been decreasing since then as a result of trade war. by Gao Shanwen on trade war impact: 1/5
While decrease of FDI is partly due to China’s economic slowdown,escalation of China-US #trade tension is also a contributor which has been reflected in
a sharp increase of #Chinese investments in southeast Asian countries earlier
this year, signaling shift of supply chains. 2/5
The #tradewar has also hurt China’s #manufacturing investment which is expected to be under further pressure, in particular investment activities that highly rely on
#export. 3/5
Despite sharp decline in Chinese export toUS early this year, that to #Japan,#EU,#Vietnam,#Philippines has been increasing. In fact, the
depreciation of RMB as a result of trade war helped diversify shocks to other
countries: mp.weixin.qq.com/s/L1ZwNgUeFWxk… 4/5
A possible path through which trade war affects Chinese #economy: trade war between world 2 largest economies→gloomy expectation on global economic outlook→slowdown of #trade and economic activities→weak demand on global market→decrease of #Chinese #export. 5/5
pic for 1/5
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