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Home / China / Grassroots / Economy
China loses grip on supply chain
Chris Devonshire-Ellis - Dezan Shira & Associates, 02-05-2013

BEIJING - The 2012 drop in foreign direct investment in China is pointing out that manufacturing capacity is being rethought by multinational companies (MNCs) considering global trade as a whole. The drop – some 4% from FDI figures in 2011 – is down to a number of issues, not least the emergence of competing destinations elsewhere in Asia for the same FDI dollars. However, it’s not indicative of any particularly bad news on the China front as the country still attracted US$111.7 billion (€84 billion) in FDI in 2012 after a record US$116 billion (€89 billion) in 2011, and the country remains one of the top destinations for corporate expansion. It should also be noted that China’s exports last year hit US$2 trillion (€1.5 trillion) in a sign that the world’s second largest economy continues, for the time being at least, to be the world’s manufacturer of choice....

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