(MENAFN) China's efforts to attract foreign investment have encountered further setbacks as data reveals a continued slowdown for the third consecutive month in March compared to the previous year. According to calculations based on figures provided by the Ministry of Commerce, actual new foreign investments in China amounted to 87 billion yuan (USD12 billion) last month, marking a significant 38 percent decrease compared to the same period in 2023. This downward trend underscores the challenge Beijing faces in enticing more foreign funds to bolster its economy.
Vice Minister of Commerce, Guo Tingting, disclosed that inward investments during the first quarter of the year totaled 301 billion yuan, reflecting a substantial 26 percent decline from the corresponding period in the previous year. Guo attributed this sharp downturn to the exceptionally high comparison base set in the first quarter of 2023, which saw a record surge in investments. Despite China's efforts to promote investment opportunities following the reopening of its economy after years of pandemic-induced closures, foreign companies have shown reluctance, citing geopolitical tensions and uncertainties surrounding the country's economic growth prospects.
A survey conducted among US companies at the beginning of the year revealed that nearly half of the respondents had no intentions to expand their investments in China, despite some signs of improving US-China relations. This hesitance among foreign investors underscores the complex geopolitical landscape and economic uncertainties that influence investment decisions, posing significant challenges to China's efforts to attract foreign capital and stimulate economic growth.
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