Shanghai Yangshan Deepwater Harbor, the largest smart container wharf in the world, handles a staggering number of sea containers every day without the need for any human intervention. (JI HAIXIN / FOR CHINA DAILY)
BEIJING - As COVID-19 continues to sweep across the world and wreck economic havoc globally, foreign capital continues to flow into China, according to a report compiled by research firm Rhodium Group published Thursday.
The first five months of 2020 has seen foreign M&A (mergers and acquisitions) into China surpassing Chinese outbound M&A activities in both volume and value terms for the first time in a decade
While the COVID-19 outbreak has slammed inbound and outbound deal-making this year, capital inflows have picked up every month since January. The first five months of 2020 has seen foreign M&A (mergers and acquisitions) into China surpassing Chinese outbound M&A activities in both volume and value terms for the first time in a decade.
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"Over the past 18 months, we have recorded levels of foreign M&A into China that were not seen in the previous decade," the report reads.
According to Rhodium, most of the capital inflows were driven by American and European firms taking advantage of looser foreign ownership limits or betting on Chinese consumer demand.
The capital inflows come at a time when US-China relations are strained. According to the report, "foreign appetite for assets in China will remain robust."
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Rhodium researchers also cautioned that reduced foreign direct investment flows will be a global reality for some time and China is no exception.
"The COVID-19 pandemic is dragging on international trade, people flows, and cross-border capital movements. UNCTAD (United Nations Conference on Trade and Development) predicts that global FDI flows could drop up to 40 percent in 2020. China is not an exception and is experiencing diminished capital inflows and outflows," the report reads.
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