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covid19 china

Last year, China recorded the highest level of foreign direct investment in its history. This came despite the trade war with the US.

China was the second-largest recipient of FDI after the United States. And about a quarter of it was directed to manufacturing, while 15% of it was into high tech and computing.

The breakdown shows how China has been moving from being a manufacturing hub towards higher added value products.

This isn’t a unique path, as a matter of fact. Japan went through a similar process after WWII, leading many observers to project that China would, in the future, be at least economically similar to Japan.

Investment in manufacturing was already starting to be superseded by other activities before the start of the new decade.

All your eggs in one basket

China had, for several years, realized that it couldn’t – and didn’t want to – remain the world’s manufacturing center.

The trade war just made the country’s leaders redouble e...

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