•Foreign Direct Investment in China Falls 35.7% on Global Economic Slump

http://www.bloomberg.com/apps/news?pid=20601087&sid=a04R2I3FkPMU

Foreign Direct Investment in China Falls 35.7% on Global Slump
Share | Email | Print | A A A

By Bloomberg News

Aug. 17 (Bloomberg) -- Foreign direct investment in China fell for a tenth straight month in July as companies stalled expansion plans amid the global financial crisis.

Investment declined 35.7 percent from a year earlier, the commerce ministry said at a briefing in Beijing today. That compared with a 6.76 percent drop in June.

For Related News and Information: Most-read stories on China: MNI CHINA 1W <GO> Most-read China economy stories: TNI CHECO MOSTREAD BN <GO> For top economic news: TOP ECO <GO> For top China news: TOP CHINA <GO> Credit crunch page: WCC <GO> Government relief programs: GGRP <GO>
Last Updated: August 16, 2009 22:24 EDT

 

This has been massively offset by the unprecedented monetary expansion from China's banking system in the past 6 months. China is not in need of capital, but in need of quality investments to diversify from their dollar holdings. They have enough capital to supply the rest of the world.

 

The real point of significance is waning demand for Chinese products, production capacity, etc.

The world is hurtling for a hurting...

 

Statistically, your dire prognostication for a global free fall is incorrect.

Global economy is now at the trough of the global recession, with a few economies sitting on the right side of the chart pulling up.

The Chinese are being forced to do what they should have done many years ago. Stimulate domestic consumerism to hedge against export oriented production economy.

They need to grow the service sector while being careful to keep parasitic entities like Goldman Sachs out of their economy.

 

"Global economy is now at the trough..." - are you sure there's no W on the horizon, even assuming you're even correct in your base assertion?

"The Chinese...[need to] timulate domestic consumerism...need to grow the service sector..." - are you predicting they will succeed?

 

Wait, instead of a bad "W," why not an "L?"

I'd bet on a 'L' if I had to bet.

 

ByLoSellHi, you are so brave and a voice in the wilderness. I mean who but you can post depressing articles others wrote about how bad the economy is. Your pulitzer is in the mail. Seriously, why do you post on a trading site when you don't trade. All you do is market commentary that others wrote. Seriously at least write your own stuff and maybe I could respect you even though I wont.