Not only is that helping to drive the economic rebound, but with China reducing barriers to investment and the economy the only major one likely to grow this year, investment is set to continue flowing into the country.
“US and other foreign firms will continue to invest in China as it remains one of the most resilient economies during the global pandemic and as future growth potential there remains stronger than most other major economies,” said Adam Lysenko, an analyst at Rhodium Group who researches Chinese investment.
The investment boom comes despite continued political uncertainty for foreign firms. The Trump administration has ratcheted up tensions in recent months, placing restrictions on Chinese businesses, especially in the technology sector. China’s policy toward the incoming Joe Biden administration is still unclear. And an investment treaty between the European Union and China hasn’t yet been signed, although it’s getting close.