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“Zero covid” may reduce foreign investment in China

Foreign Direct Investment (FDI) in China is expected to fall in the coming years as the country insists on a ‘zero cases’ strategy of covid-19, predicted the analysis unit of the magazine The Economist.

The Economist Intelligence Unit (EIU) ruled out, however, a mass corporate exodus from the country, given the attractiveness exerted by the vast local market and the importance of China in global production chains. “Even if they do not abandon the Chinese market, we hope that foreign investors will increasingly see Southeast Asia, where governments have adopted a strategy of ‘coexistence with the virus’, as an attractive option for future investments”, reads the released report. today by the EIU.

The Economist’s analysis unit considered the strategy to be one of the “biggest challenges” that foreign investors have faced in the country in recent history.

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Generalist media, focusing on the relationship between Portuguese-speaking countries and China.

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