United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that on official data released by China’s Ministry of Commerce covering January and February of this year. According to the report, foreign direct investment (FDI) into China was RMB 17.121 billion yuan (around US$2.365 billion), a year-over-year decrease of 20.4 percent. Investment in China by the UK, Germany and South Korea reportedly increased by 87.9 percent, 54.7 percent and 45.2 percent, respectively.
U.S. President Trump imposed a 10 percent tariff on Chinese goods on February 4, and on March 4 the U.S. imposed an additional 10 percent tariff on China. UDN wrote that “China is trapped in the haze of a trade war.”
In order to respond to tariffs and to retain foreign investment, the China’s Ministry of Commerce and National Development and Reform Commission announced a “2025 Stabilizing Foreign Capital Action Plan.” The Ministry explained that “some companies have moved their new investment to other countries” in light of geopolitical factors.
Source: UDN, March 15, 2025
https://udn.com/news/story/7333/8609828