Foreign businesses have been pulling money out of China at a faster rate than they have been putting it in, official data shows.
The country’s slowing economy, low interest rates and a geopolitical tussle with the US have sparked doubt about its economic potential.
All eyes will be on a crucial meeting between Chinese leader Xi Jinping and US President Joe Biden this week.
All eyes will be on a crucial meeting between Chinese leader Xi Jinping and US President Joe Biden this week.
“Anxieties around geopolitical risk, domestic policy uncertainty and slower growth are pushing companies to think about alternative markets,” says Nick Marro from the Economist Intelligence Unit (EIU).
China recorded a deficit of $11.8bn (£9.6bn) in foreign investment in the three months to the end of September – the first time since records began in 1998.
This suggests that foreign companies are not reinvesting their profits in China, rather they are moving the money out of the country.
“China is currently facing slower growth and needs to make some corrections,” says a spokesperson for the Swiss industrial machinery manufacturer Oerlikon, which pulled 250m francs ($277m; £227m) from China last year.
Foreign businesses have been pulling money out of China at a faster rate than they have been putting it in, official data shows.
All eyes will be on a crucial meeting between Chinese leader Xi Jinping and US President Joe Biden this week.
The country’s slowing economy, low interest rates and a geopolitical tussle with the US have sparked doubt about its economic potential.
“Anxieties around geopolitical risk, domestic policy uncertainty and slower growth are pushing companies to think about alternative markets,” says Nick Marro from the Economist Intelligence Unit (EIU).
All eyes will be on a crucial meeting between Chinese leader Xi Jinping and US President Joe Biden this week.
All eyes will be on a crucial meeting between Chinese leader Xi Jinping and US President Joe Biden this week.
“Anxieties around geopolitical risk, domestic policy uncertainty and slower growth are pushing companies to think about alternative markets,” says Nick Marro from the Economist Intelligence Unit (EIU).
China recorded a deficit of $11.8bn (£9.6bn) in foreign investment in the three months to the end of September – the first time since records began in 1998.
This suggests that foreign companies are not reinvesting their profits in China, rather they are moving the money out of the country.
“China is currently facing slower growth and needs to make some corrections,” says a spokesperson for the Swiss industrial machinery manufacturer Oerlikon, which pulled 250m francs ($277m; £227m) from China last year.
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