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The shopping spree of state-owned enterprises is over

China’s shopping spree in other countries seems to be history for the time being. Although Chinese investments continued to rise overall in 2021, albeit by a meager three percent, the small increase was mainly due to the construction of own factories. Spending on corporate acquisitions fell to its lowest level in 14 years, according to a new study by Rhodium Group and Mercator Institute for China Studies (Merics). “Compared with the peak periods around 2016, Chinese investment has settled at a low level,” Max Zenglein, chief economist at Merics, said on Tuesday during the presentation of the study.

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