Japan’s Investment in China Drops 43 Percent YoY

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.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza