European investment in China slows

Beijing [China]Sept. 23 (ANI): As China’s property market languishes, consumer spending dries up due to draconian ‘Covid-zero’ policies, and US investment also slumps due to geopolitical tensions. , European corporate investment in China is slowing.

The Straits Times reported that foreign investment is an ominous sign for China’s economy, as it is limited to a handful of multinationals.

According to the statistics of foreign direct investment released by China, it is gradually rising overall. However, most of what China sees as foreign investment comes from Hong Kong, which tends to consist of mainland funds that are temporarily routed through Hong Kong as tax breaks.

A new analysis by New York research firm Rhodium shows that so-called greenfield investment from the European Union and Britain in new factories and other equipment has plummeted, The Straits Times reported.

These investments fell to just under US$2 billion in the first half of this year, compared with US$4.8 billion in the first half of last year, according to Rhodium.

A handful of German manufacturers like Volkswagen still make up the majority of some European investments made in China. finances these investments by keeping the profits it generates in China.

In a separate report issued in Beijing on Wednesday morning, China’s European Chamber of Commerce said European companies have sent executives from abroad to China, which has severely restricted international travel to reduce the risk of the coronavirus. said he was frustrated by the difficulty of accepting workers and employees. Outbreak, The Straits Times reported.

China’s economy grew just 0.4% year-on-year in the second quarter, making the Chinese market less attractive for foreign investment.

No new European companies have entered the Chinese market since the pandemic began, and all but the largest European companies have lost interest, said Jörg Wuttke, president of the chamber of commerce. , reported The Straits Times.

“They don’t even want to think about China,” he said, adding that the company’s preferences were “obviously Southeast Asia, India and the rest of the world.”

On Tuesday, the Swedish Chamber of Commerce in China released a survey showing that many of its members are pessimistic about China’s investment climate.

In its report, the European Chamber recommended a set of policies to the Chinese government to revive foreign investment. These include making it easier for European airlines to fly to China and not encouraging boycotts of European products by Chinese consumers over controversies like China’s human rights policies, The Straits Times said. reported. (Ani) European investment in China slows

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