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Significance
FDI is supporting China's domestic recovery and its role as a global growth engine. However, in a 'Five-Year Plan for the use of FDI' issued last October, China's government expressed a cautious view on the prospects for inbound FDI, pledging to improve its quality and keep its quantity stable.
Impacts
Services, high-tech manufacturing and R&D will be the major areas of FDI growth in China.
The rising stock of FDI in China means firms in developed countries will continue pressing their governments to avoid upsetting Beijing.
As more FDI in China targets the domestic market, Vietnam, Bangladesh, Indonesia and the Philippines offer alternative export platforms.
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