Home Capital China Focus

China's business and investment trends

Daryl Guppy
Daryl Guppy6/17/2022 11:15 AM GMT+08  • 5 min read
China's business and investment trends
A view of US-listed, Chinese electric car maker Nio’s showroom in Shanghai. Last year, at the height of the Covid-19 lockdowns, China sold 3.4 million electric cars. Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Several themes seem to dominate much of the media coverage of China in the pre- and post-Covid-19 environment. They highlight the collapse of the Chinese economy, the collapse of exports from China and blame inflation on the supply and logistics chain issues.

Whilst there is an element of truth in all of these, they are also a little exaggerated. And that is an issue, because taken at face value, this impacts on the way business invests in or interacts with China. The reality is that China manufacturing and exports have stayed strong throughout the Covid-19 period. This is despite the disruption from the war in Ukraine. China exports as a percentage of total world exports have declined by less than 1% in the period of 2020 to 2021.

Ratings agency Standard & Poor estimate that in 2020, China exports represented 17.5% of world total exports, up from 16.25% in 2019. Despite all the problems of supply chains, China exports at the end of 2021 represented 17.4% or total world exports. According to China’s Ministry of Commerce, foreign direct investment rose by more than 17% year on year for the first four months in 2022 to US$87.77 billion ($122 billion). The largest increases came from South Korea +52.8%, the US +27.1% and Germany 21.4%.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now