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Significance
China gets to upgrade its industry and the economy, while multinationals are able to exploit considerable business opportunities and build up cross-border technology chains. FDI inflows were impacted by the COVID-19 pandemic, and escalating geopolitical tensions have added a further dampener. Nevertheless, FDI in high-tech industries is holding up well.
Impacts
China’s high-tech industrial base will expand significantly.
There will be increasing R&D by domestic and foreign entities in cutting-edge technologies.
Foreign companies risk being caught up in political confrontations between foreign governments and Beijing.
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2023
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