Financial Times editorial board warns China must reform or risk losing foreign investment

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The Financial Times editorial board warned this week that China must reform domestically if it wishes to continue to receive investment from abroad.

You can now listen to Fox News articles!editorial board called Tuesday on China to effectuate economic reforms or risk losing investment from companies abroad.

The article, titled"An opportunity for China to improve ties with foreign investors," argues that the Chinese government mistreats foreign companies and investors, and notes that some in the finance industry forecast declining investment in China due to a deterioration of the U.S.-China relationship.

The board notes that despite this period of integration,"now surveys are showing rising disillusionment among foreign investors, many of whom plan to shift investment out of China." , the change in investors’ feelings is really due to longstanding issues in China’s domestic environment and China’s increasing disputes with the West.

"Such sentiments do not derive solely from China’s muscular zero-Covid policies, though canceled flights, visa complications and lengthy quarantines have contributed to the frustrations of foreign executives. The deeper roots of disaffection lie in a sense that doing business in China has become harder as Beijing’s rivalry with the west intensifies," the board wrote.

"But a real focus on reducing red tape and ensuring equal treatment with local competitors would alleviate some of the gloom descending upon China’s foreign business community."

 

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