Three-year decline of 99%, the state issues documents to stabilize foreign investment

On February 17, the North Institute released the “2025 Action Plan for Stabilizing Foreign Investment.”

Prior to this, on February 14, the State Administration of Foreign Exchange also released the 2024 international balance of payments data, the net inflow of foreign investment decreased by 99% compared to the peak period of 2021!

The peak of this data appeared in 2021, with a net inflow of 344 billion US dollars; in 2024, it was 4.5 billion US dollars, with net outflows in two quarters and net inflows in the first and last quarters.

What is the concept of 4.5 billion US dollars? It has fallen to the lowest level in 33 years, that is, since 1991.

Another set of data from the Ministry of Commerce can also roughly corroborate this: the actual use of foreign capital in 2024 was approximately 114.93 billion US dollars, a year-on-year decrease of 27.1%, which is more than 3 times the 8% decrease in 2023, and is also the largest decline since 1990, with the data falling below the level of 2010…

Although the highest party newspaper published a preventive injection on the front page as early as February 10, the pressure still came head-on.

This article puts forward several arguments, which are very worthy of careful consideration:

• Traditional business models don’t work in China, and foreign companies that can’t keep up with the changes can only lose to Chinese companies and thus retreat.
• In the short term, the 99% drop in 2024 is because it rose too sharply in the previous few years, leading to fluctuations.
• In the long term, the scale of foreign investment in our service industry accounts for about 70%, and the light asset nature of the service industry is obvious, leading to an increase in the number of foreign-funded enterprises and a decrease in investment.
• Emptying the cage to change birds, some foreign capital that did not keep up with the changes in the Chinese market withdrew, and more foreign capital with high technology came in. Similar to the first point, foreign-funded enterprises must come up with their unique skills to gain a foothold.

Summarizing the above reasons, it is like our current economic growth data is relatively low, which is normal. The less foreign investment comes in is also normal. There is no need to doubt that we have any problems, just like the stubborn Guan Yu:

Even so, the “2025 Action Plan for Stabilizing Foreign Investment” requires “effectively boosting the confidence of foreign investors“, which shows that the confidence of foreign investors is insufficient.

How is this said? Whose words should we listen to?

Some international media’s words can be consistent with the action plan:

• After wearing masks, the worries about the future have increased.
• Catching traitors startled foreign businessmen.
• The sluggish real estate market has led to economic slowdown, and the expectation of economic growth has disappeared.

These words are not very pleasant to hear, I don’t know if they can be accepted by everyone.

I have carefully read the action plan, which includes the words “appropriately further expanding the pilot program for opening up in the fields of telecommunications and medical care”, which shows that the previous statement that Shanghai should allow foreigners to access foreign websites is not entirely impossible 《The Vice President of the University Suggests Opening Foreign Websites, Official Media Reports, What’s the Trend?》

The two most impressive points are:

• Support foreign investment to be more directed towards the central and western regions and the northeast region.
• Fully utilize news releases, briefings, interviews, expert interpretations and other methods to actively publicize and interpret our country’s new policies, new measures and new highlights for expanding high-level opening up to the outside world.

Some people may say that when foreign investors’ confidence is low, they are still guided to help the poor. This is Murong Fu restoring the Great Yan on a pile of soil.

I cannot agree with this. With Trump becoming a usurper, the foundation of the United States has been destroyed, and the decline of the United States is just around the corner.

After all, the problem with Trump now is not that the degree of openness is insufficient, but that the rule of law guarantee is insufficient. Orders are changed in the morning and changed in the evening, and arbitrary tweets and instructions are given. Implementing documents with documents and implementing meetings with meetings, the escape of funds is inevitable.

Where can it flow to?

Of course, it is our country with the best policy and legal environment.

Just like Singapore in the past few years, one day, it woke up and found itself becoming an international financial center.

A netizen commented that only a great talent like Trump could get 0 points on a test paper full of true/false questions.

Seen in this way, we have promptly introduced a plan to stabilize foreign investment, which is not actually facing pressure, but rather going with the flow!

The problem now is that we are afraid that one day they will suddenly understand and start copying the homework, and also implement the “Action Plan for Stabilizing Foreign Investment”.

Otherwise, it’s all mine.