China reported its smallest annual foreign direct investment since the 1990s last year, as the world’s second-largest economy struggled to recover from the pandemic and investors sought higher yields elsewhere.
China’s direct investment liabilities, a gauge of foreign capital flowing into the country, totalled about $33bn in 2023, according to data released late on Sunday by the State Administration of Foreign Exchange. This was an 82 per cent decline from the previous year and the lowest annual figure since 1993.
The SAFE gauge is more volatile than other direct investment indicators as it includes a wider range of activities linked to foreign capital inflows. The reading comes as Beijing struggles to reignite the country’s stagnant economy as it seeks to counter a property crisis, weak domestic demand and low investor confidence.