Foreign Companies Withdraw Billions from China as Economy Slows and Trade Tensions Rise
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Foreign companies are pulling billions of dollars out of China, contributing to the decline of the yuan. Over $160 billion was withdrawn in 18 months through September.
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Some outflows are temporary due to interest rate differentials, but there are more enduring reasons like China's weakening economy and strained trade relations with the West.
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Exports, industrial activity, and property development in China have slowed or declined, diminishing foreign business optimism.
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Technology and investment restrictions between China and the West raise uncertainties and risks, making China less attractive for foreign firms.
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Recent raids and detentions of Western companies in China reinforce concerns, arguing against enlarging foreign business presence there.