FDI: OECD REPORT
China: To open up its domestic market, end applications that maintain/increase its share in the supply chain, especially in the technology sector, reduce support for Chinese companies, respect the technological secrets of U.S. companies, prevent data collection with global investments and finally increase goods coming from China. Actually an increase in the exports of soya beans for instance as much as technological goods will satisfy various segments in the U.S. but not the state itself.
While this rivalry between China and the U.S. continues, global foreign direct investment (FDI) fell by 27 percent in 2018 to $1.097 trillion, according to the OECD report. In 2017, there was a 16 percent decline. The decline in 2018 was also attributed to the role of U.S. tax reform, which can be clearly seen from Irish and Swiss figures. However, when we look at the chart below, we can see that there is already a trend. In this case, the FDI-to-GDP ratio is 1.3 percent in 2018, the lowest rate since 1999. We can see a sharp decline in Chinese figures as well.
After a sharp decline in 2017, Turkey on the other hand, came closer to the 2016 figures in 2018, similar to capital movements. While the majority think that we roll in money due to asset purchases, the reality is slightly different.