Foreign corporate investment collapsing in China - Nataxis

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With the Chinese Yuan depreciating against the US Dollar, keeping the USD/CNY pinned into yearly highs, economists at Nataxis note that things could c

ontinue to deteriorate for the Renminbi as foreign direct investment in China has collapsed recently, sparked by hostility from the Chinese government towards foreign corporate entities and a slumping domestic Chinese economy. Direct investment by foreign companies has completely collapsed, from $400 billion annually in 2020 to just $20 billion in 2023.

Direct investment by foreign companies has collapsed in two years This reflects a sharp deterioration in China's image among foreign companies, which is a consequence of the significant slowdown in the Chinese economy, the Chinese government's increasingly hostile attitude towards foreign companies in China, rising political risk, US and European sanctions against China, and the prospect of higher tariffs on Chinese products in the United States and Europe.

 

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