Part 11/13:
Despite a solid increase in foreign direct investment (FDI)—up 17.3% in the first seven months of this year to nearly $800 billion—the broader economic landscape remains uncertain. Outside investment from Hong Kong contributed significantly to this surge, but excluding it, the growth rate is about 8%.
Analysts note that global companies are now seeking diversification of their supply chains across Asia. With geopolitical tensions and domestic uncertainties, firms are considering spreading investments to countries like India, Vietnam, and others, rather than relying solely on China. This diversification signifies a cautious optimism but also a recognition that China’s dominance as the primary manufacturing hub may diminish over time.