The Great China Unwind: Foreign Investors Pull $29B Out Of Chinese Equity Markets In 2023 despite the People’s Bank's efforts at making China an attractive opportunity for foreign investment

tardigrada OP , 7 months ago

To provide context to the article: There is a proven dynamic relationship between trade openness, foreign direct investment, and industrial economic growth within economies, and this is true also for China. There is strong evidence for this (for example, see here).

A significant portion of China’s GDP depends on foreign direct investments, and the Gini coefficient, a metric for economic inequity, is 0.45 in China (for comparison, in most European countries it is between 0.3 and 0.35). It is commonly said that any Gini above 0.4 bears a high risk for social unrest.

zhunk , 7 months ago

Gini above 0.4 bears a high risk for social unrest

The US in 2022 has a GINI of 0.488. Not great.

tardigrada OP , 7 months ago (edited 7 months ago)

I don’t know how whataboutism helps China or anyone else, but there are several countries with high degrees of inequality. You should also provide a source for your data. Gini coefficient for US

zhunk , 7 months ago

Source

I didn’t mean it as whataboutism to justify China’s situation, just as a tangent about the US also having work to do. I agree, now that you said it, that it looks like whataboutism.

Hopefully the drop in the US over the past two years turns into a longer trend.

t3rmit3 , 7 months ago

It’s going to be very difficult for China to attract money when other countries with less authoritarian practices are stepping into spaces that China previously dominated, and China really cannot afford to lose that money and those jobs.