Foreign investment in China declines
A combination in lagging efforts by the Chinese government to curb real estate inflation and a weakened global economy is resulting in a decline in foreign investment in the economic superpower.
Reuters news reports that while officials are not concerned about the short-term decline, the recent rise in labor costs could prove troublesome for China.
Hua Zhongwei, an economist with Huachuang Securities in Beijing, concedes that increased labor costs was having an impact on some smaller maunfacturers.
“For those that rely heavily on cheap labor as an advantage, China may seem to be an increasingly unwelcoming place,” he said.