The latest data has revealed that foreign direct investment (FDI) in China grew by 6.3 per cent in the first 11 months of this year. According to China’s Ministry of Commerce, China received $ 15 billion in FDI in November. November was the eighth consecutive month when FDI in China increased. The overall news is that 2020 may have been a year of economic loss for the rest of the world due to the Corona epidemic, but China has proved to be a year of prosperity. Even in spite of all the anti-China campaign of America, US investment in China increased.
In a conversation with the American newspaper New York Times, Senior Fellow at the Peterson Institute, E Lovely said that the total imports to the US were reduced due to the epidemic. But imports from China have increased. Lovely said – China has improved its condition rapidly after the epidemic. At the same time, it dominates the production of the things that the people of America felt even more in the epidemic. The effect of this was that the charges imposed by (the President) Trump proved ineffective. Import of Chinese goods into America increased.
According to a report published in the British newspaper Financial Times, foreign investors in shares and bonds in China have increased their investment this year. China’s stock index – CSI, rose 27 percent in dollar value this year. While the stock index of the 500 top companies in the US has gone up by 13 percent. The same is true of tech companies’ index Chinext. The index has gone up by 59 percent.
“I have been in Asia for 20 years,” said Kenneth Ekintewe, the head of the Asian government loan division of Aberdeen Standard Investments. This year has been a challenge for those who were reluctant to accept the increasing weight of Chinese securities.
During the epidemic, Chinese bonds particularly attracted investors. One reason for this was China’s decision to open up its financial system to the rest of the world. But the reason is that China handled the corona epidemic very soon. Paul Colwell, head of the Asia Advisory Portfolio Group at Willis Towers Watson, told the Financial Times that China grew rapidly on the path to improving the condition after Corona. He said that China acts very differently from the way policy makers react in the rest of the world in terms of economy, monetary policy, fiscal policy, etc.
The reality is that in 2020 China was the only option for investors seeking to make a profit in the debt market. Deutsche Bank’s macro strategist Sameer Goel says that in 2019, more purchases were made by investors than they expected to buy Chinese bonds in 2019.
According to experts, another reason for the economic success that China received this year is the continued strengthening of its currency yuan. This prompted many investors to move away from the dollar to invest in the Chinese market in Chinese currency. So even though the corona epidemic started in China, it could not do much harm to China. On the other hand, the rest of the world was badly affected by it. China has benefited from this. His economic strength has increased this year.