Direct Foreign Investment in China Plunges; Net Funds Outflow From China at 7-Year High

NTD Newsroom
By NTD Newsroom
October 30, 2023China in Focus

Direct Foreign Investment in China Plunges

Foreign investment in China is declining.

According to the Financial Times, foreign investment in China fell by one-third in September compared to the previous year—the largest drop in nearly a decade.

Foreign investment into China has seen double-digit percentage drops every month since May.

Net Funds Outflow From China at 7-Year High

Some analysts say that foreign companies are trying to “get [their] profits out of the country as fast as they can.” and that seems to be a trend.

According to China’s State Administration of Foreign Exchange, more money left the country in September than came in. Net outflow reached nearly $54 billion. Marking the highest outflow since January 2016.

The U.S. in recent months has moved to restrict American investment in mainland China. At the same time, Beijing’s revision of its anti-espionage law in July may have also contributed. That’s over concerns of arbitrary detention, raids on foreign businesses inside China, and the law’s vague description of what could be seen as espionage.

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