Chinese economy showing signs of depression

China has seen its Foreign Direct Investment collapse to a record four year low, calling for action from authorities. The Ministry of Commerce reported that inbound investment accounted to $7.2 billion for the month of August, a decline of more than 10% after six years.   A Commerce Ministry spokesman outlined that the anti-monopoly steps adopted are not accountable for this slump in foreign direct investment.   However, he did not go deep into the topic to explain the ‘why’s’ of this slump.   With the trend that is following, it will be difficult to meet the 7.5% growth target set by Premier Li  Keqiang for the Chinese economy. Earlier, industrial output dropped ahead of the financial crisis threatening the global economy.   In an attempt to bolster confidence among investors, Premier Li Keqiang had previously stated that new incentives will be implemented to attract foreign investment.   Outbound investment nevertheless climbed to 15.3% accounting to $65.2 billion. Source: Bloomberg
Priscilla Camryn By: Priscilla Camryn
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