While the ongoing novel strain of COVID-19 has seen pick apart the economy of China at an alarming rate. The latest sector to take a hit was the Federal Domestic Investment. On a daily basis, China experiences a healthy dose of investments owing to their superior production techniques and their overall GDP share on the international stage.
The FDI totaled 134.4 billion yuan (USD 19.2 billion) for the period of January-February 2020 as quoted by Zong Changqing, director of foreign investment department, which functions under the Ministry of Commerce. An initial breakdown of the total FDI reveals an increase of 4% for investments in January, however, the rate pummeled 25.6% throughout February owing to the outbreak.
Zong further warns of a complex and grim FDI situation for the following year stating factors such as “shrinking global FDI” and increased pressure on the international economy. While China expresses confidence over the long term for its economic growth citing factors such as unchanged long-term goals and the country’s previous edge in the industrial sector, talent recruitment and accumulated infrastructure.
“The epidemic will not change the attraction of China’s large and booming market for foreign investment,” he said, state-run Xinhua news agency reported.
Zong further quotes that some multinationals are even using the halted economic downright to level the playing field by getting an early start as a sentiment of trust in China’s economic prowess to overcome the standstill. Starbucks announced plans to build a coffee innovation park in east China’s Jiangsu Province adding an initial investment of USD 130 million.
Furthermore, the innovative coffee park will be the world’s leading coffee chain that will be situated outside the United States. While China seems pretty unfazed at the edge of the world’s fifth pandemic, Premier Li Keqiang signed a congratulatory letter on Friday in terms of greenlighting the coffee innovation park