China’s role in shifting Asian supply chain, leveraging Hong Kong key to boosting FDI, top researchers say
- Foreign direct investment in China fell by 27.9 per cent, year on year, from January to April amid weak domestic demand and an economic slowdown
- Chinese researchers believe focus needs to be placed on China’s position in the Asian supply chain, as well as Hong Kong’s role in raising offshore capital
Top Chinese researchers have advised China to increase efforts to attract more foreign investment by focusing on its role in the Asian supply chain, while also leveraging Hong Kong’s offshore position to raise capital.
“It is precisely because of this trend of [global] regionalisation that we know that each regional centre may gradually strengthen,” said Liu Qing, deputy director of the National Academy of Development and Strategy at Renmin University of China.
“What attracts people to China is that we can further strengthen this Asian industrial chain.”
Foreign direct investment (FDI) in China fell by 27.9 per cent, year on year, to 360.2 billion yuan (US$49.7 billion) from January to April, the Ministry of Commerce confirmed on Friday.
FDI growth had slowed from 2018-22 after more than a decade of stable growth, Liu added, with weak domestic demand and an economic slowdown among the factors seen to be dissuading foreign investors.
A new round of large-scale global industrial shifts is likely to occur in the next decade
But China should stay on top of “very likely” global industrial shifts over the next decade, Liu said.
