friendshoring

China’s FDI Flight Fantasies and Avoiding Corresponding Follies

The sky for foreign direct investment (FDI) in the People’s Republic of China (PRC/China) is falling per a slew of recent news articles. The evidence? A large percentage of China inward FDI (IFDI) is from Hong Kong and a notable percentage of this money is “round tripping” (i.e., money flowing from the PRC through Hong Kong and then back to the PRC). In addition, more companies are shifting operations to other destinations.