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South-east Asia could draw some investors away from China as virus lockdowns bite

MAJOR South-east Asian economies are set to pull more foreign direct investment (FDI) in the near term, as investors grow wary about China’s locked-down market.

Still, China’s status as the regional giant is likely to stay unchallenged, especially in the longer run.

“FDI flows into Asean have proven extraordinarily resilient over the last couple of years,” Frederic Neumann, co-head of global research for Asia at HSBC, told The Business Times.
“Asean has been a growing magnet for foreign investment flows already in the years prior to the pandemic, highlighting its strengthening competitiveness in many sectors vis-à-vis China.”
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