China Is Having a Hard Time Wooing Foreign Investors Back

• Direct investment liabilities book first drop since 1998: data
• Abrupt regulatory changes have been ‘damaging’ for sentiment

 

China is struggling in its attempt to lure foreigners back as data shows more direct investment flowing out of the country than coming in, suggesting companies may be diversifying their supply chains to reduce risks.

Direct investment liabilities in the country’s balance of payments have been declining rapidly in the last two years. After hitting a near-peak value of more than $101 billion in the first quarter of 2022, the gauge has weakened nearly every quarter since. It fell $11.8 billion in the July-to-September period, marking the first contraction since records started in 1998.

https://www.bloomberg.com/news/articles/2023-11-08/china-is-having-a-hard-time-wooing-foreign-investors-back