Foreign Investment in China Plunges to 30-Year Low Amid Covid Lockdowns and Geopolitical Tensions

Foreign direct investment into China fell to $33 billion in 2022, the lowest level since 1993, showing the impact of COVID lockdowns and weak recovery.

Profits of foreign firms in China dropped 6.7% in 2022, and new foreign direct investment was the lowest in 3 years.

Foreign companies are pulling money out due to geopolitical tensions and higher interest rates elsewhere.

Japanese, Taiwanese, and South Korean investment into China slumped to decade or multi-decade lows in 2022.

One bright spot is German investment into China, which hit a record $13 billion in 2022 and now makes up over 10% of total German foreign direct investment.