December 7, 2021

fDi Digest: FDI into China hits new lows. What’s next?

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From fDi Intelligence

By Jacopo Dettoni

November 4, 2021

Hello everyone, this is Jacopo in London. 

Since Wuhan first experienced a Covid-19 outbreak in early 2020, China has been sealed off to nearly all foreign visitors. Meanwhile, Beijing has pushed through its ‘dual circulation’ policy to loosen the country’s reliance on overseas markets and technologies, while tensions with the US have only mounted. Investment inflows have adjusted accordingly. While the country’s GDP quickly bounced back to pre-Covid levels, FDI is nowhere near to where it was before the pandemic. In fact, Seth O’Farrell crunched our data to find out that greenfield FDI into China fell to historic lows in 2021

Elsewhere, we looked at India’s lingering policy ambiguity, with New Delhi’s scrapping the retroactive tax rules that spooked investors for years, while at the same time flirting with fresh retroactive rules

Thanks for reading. For any comment or suggestion write me at: [email protected]. If you haven’t already, please sign up for the newsletter here — Jacopo.

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