Japan’s direct investment to China in January and February shrank 43.6 percent from a year ago while overall foreign investment rose 10.4 percent, Chinese government data showed Tuesday, underlining the economic fallout of soured political ties between Asia’s two economic powerhouses.
Direct investment from South Korea to China jumped 3.2-fold, the United States up 43.3 percent, and Hong Kong up 17.6 percent.
China’s Ministry of Commerce said the figures represent the amount of investment implemented by foreign investors in China.
In monetary terms, the amount of Japanese investment totaled $716 million in January and February.
Diplomatic ties between Japan and China have come under severe strain in recent years, with the two countries locked in a bitter territorial dispute in the East China Sea amid Chinese complaints of resurgent militarism in Japan.
The decline of Japan’s direct investment to China in the first two months of this year followed a 4.3 percent fall last year.
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