The Chinese Government has made quite radical decisions in the past few months to tackle the Coronavirus. China’s economy, which completely quarantined the city of Wuhan, was heavily damaged for several months. But apparently investors still rely on the Chinese economy.
According to the information shared by the Chinese Ministry of Commerce, foreign investors still trust the Chinese economy and continue to invest in China.
It was thought that China would lose a large amount of money due to the coronavirus and investors would leave China. However, according to Reuters, the amount of capital that left the country in the past few months was much lower than expected.
Foreign direct investment (FDI) entering the country between January and March fell 10.8%, but this rate was expected to be much larger. Speaking on behalf of the Ministry of Commerce, Gao Feng said globalization has slowed slightly over the past few months, but the uptrend is still continuing.
In particular, investors from Japan are planning to continue their investments in China and increase their investments in the country.
China is expected to issue its own digital currency under the name of digital yuan this year. Since all kinds of records of this money will be kept electronically, the government will be able to easily follow where and how this money is used.
This actually means: China will be able to track investors who use digital yuan and invest in this way in the country. Thus, the government will be able to monitor and record both the capital entering the country and the capital leaving the country. Of course, it is not clear how much of the data of the Chinese Government will be made public regarding this digital currency.