china rwc

Question 1

what happened to Chinas FDI

Answer 1

fell 87% in 2023 due to a major property development going under

Question 2

what happened to Chinese deflation

Answer 2

January 2024, food prices fell at the fastest pace in 15 years, sinking deeper into deflation and weakening demand. first entered deflation last summer but at a slower pace, a result of covid restriction aftermath

Question 3

what is the consequence of chinese deflation

Answer 3

could flood the european markets with cheaper goods, impacting terms of trade, exchange rates, patterns of trade, comparative advantage and free trade vs protectionism.
focus shifting towards Vietnam and India with cheaper labour and China deflating on purpose to become more competitive (SPICED)

Question 4

what is China doing with Vietnam

Answer 4

Chinese car makers relocating to Mexico to reexport into the states to avoid tariff/quota barriers