China’s Firms Are Leaving the Country

~ Michael Parkin

Chinese firms are investing abroad in projects that cost a total equal to 1% of China’s GDP. Key investments are in factories in Southeast Asia—Vietnam (low-value goods), Indonesia (minerals), Malaysia, and Thailand (EV projects)—often accompanied by importing Chinese workers. –economist.com, January 04, 2025

Answer the following questions to check your understanding of the story.

How are Chinese investments in physical assets abroad recorded in the balance of payment accounts?

They are recorded as an outflow in the ___________ of China and as an inflow in the ____________ of the countries receiving investments.

Where are the final goods and services produced by Chinese-owned factories and Chinese workers abroad included in National Income and Product Accounts?

The goods and services produced by Chinese-owned factories and Chinese workers abroad are included in China’s ______ and in other countries’ ______.

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