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Falling FDI Does Not Mean Disinvestment

CHINA PRESS
MNI (Singapore)

The decrease in foreign direct investment should not be simply interpreted as growing disinvestment, as it is also affected by declining profits of foreign industrial enterprises and changing exchange rate spreads, 21st Century Business Herald reported citing experts. The first quarterly deficit in FDI was recorded in China’s balance of payment – a net outflow of USD11.8 billion in Q3, raising market concerns. However, the Ministry of Commerce reported the actual amount of foreign capital used was CNY919.97 billion, a year-on-year decrease of only 8.4%, which is more internationally comparable, the newspaper said.

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