Caption: A visual representation of China's economic downturn. Across both first-tier cities and remote towns, shopping malls and markets face waves of closures, with vendors often outnumbering customers. (Video screenshot)
[People News] Data recently released by the General Administration of Customs of China indicates that exports in October fell by 1.1% year-on-year, a stark contrast to the robust 8.3% growth seen in September, and significantly below the market expectation of 3% growth. The three main drivers of China's economic growth—consumption, investment, and exports—have all shown a marked decline in recent years, contributing to a continuous downturn in the Chinese economy.
As reported by Newtalk News, on November 12, Tong Zhenyuan, the representative of the Republic of China in Singapore and an international political economy scholar, posted on Facebook that foreign investment in China has repeatedly hit lows in recent years, with data from the third quarter of 2025 even lower than the levels seen around the time of China's accession to the World Trade Organization (WTO) from 1998 to 2001. Tong Zhenyuan believes this suggests that China's foreign investment environment is reverting to the conditions that existed before its entry into the WTO.
The Milken Institute, an economic think tank, recently concluded its Asia Summit in Singapore last month. According to a report by CNBC, the summit delivered a clear message: despite China's large size, it is overly controlled and opaque, making it difficult to fully trust. This reflects the reality that, over the past two years, China has experienced record capital flight, with foreign investors withdrawing at an unprecedented pace not seen in decades.
Tong Zhenyuan noted that in the first quarter of 2022, China's net overseas direct investment (FDI) soared to 107.2 billion USD, marking a historic high for a single quarter. However, starting in the second quarter of that year, foreign capital inflows took a sharp downturn, dropping to just 37.76 billion USD, a decline of over 60% from the previous quarter. By the second and third quarters of 2024, the figures further plummeted to negative 14.97 billion and negative 11.62 billion USD, respectively. This trend indicates that foreign capital is not only halting new investments but is also withdrawing existing investments, reflecting a waning trust in China.
Since China joined the WTO in 2001, foreign investment has consistently grown for nearly two decades, showcasing China's appeal as the 'world's factory.' However, this trend has sharply reversed in the past three years. CNBC attributes this decline to a sluggish domestic real estate market, falling domestic demand, and escalating tensions with the United States, which have contributed to deflationary pressures.
In response, the Chinese Communist Party (CCP) is making efforts to reverse this trend, pledging to further open the economy to foreign investment and to restore China's rapidly diminishing status in the global foreign investment arena.
How does the CCP intend to achieve this? On November 10, state media announced the official release of 'An Introduction to Xi Jinping's Economic Thought.' Concurrently, the authorities plan to roll out several measures aimed at promoting private investment, touting these initiatives as significant steps forward.
Commentator Jiang Feng remarked on his personal channel 'Jiang Feng Moment' that Xi Jinping's actions can be succinctly summarised in eight words: 'The top issues economic texts, the bottom issues wallets.'
He pointed out that the measures announced by the State Council of the Communist Party of China to further promote the development of private investment resemble a tempting offer for private entrepreneurs while simultaneously creating deeper pitfalls. Heavy assets like railways and nuclear power, which were previously the domain of state-owned enterprises, are now open to private capital. The government also claims to make room for private enterprises in urban infrastructure projects. Emerging sectors such as the low-altitude economy and commercial aerospace, which require substantial funding, explicitly call on private enterprises to be the 'main force in tackling challenges.' Furthermore, with the rise of new scenarios in the digital economy and artificial intelligence, there is a clear invitation for private enterprises to collaborate with central and state-owned enterprises. When we consider these measures collectively, it becomes evident that this is not just a set of encouragements; it is a rallying call directed at private entrepreneurs nationwide: the blueprint for the 14th Five-Year Plan has been established, and now we urge you to bring your own capital, technology, and data, and quickly join us in this endeavor, taking another gamble together.
Jiang Feng (Jiang Feng) cautioned that if there are setbacks along the way, who will shoulder the risks? Ultimately, who will be responsible for financing this ambitious blueprint? This is the most pressing question behind this list. △
News magazine bootstrap themes!
I like this themes, fast loading and look profesional
Thank you Carlos!
You're welcome!
Please support me with give positive rating!
Yes Sure!