Foreign Investment in China Dives as Firms Grow Wary of Slowdown, Regulations, and Tensions
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Foreign companies are diversifying suppliers away from China due to trade tensions, slowing economy, and tightening regulations. China recorded its first ever quarterly FDI deficit.
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Executives worry about declining Chinese demand, with 40% expecting decreased investments and job cuts in China over the next 6 months.
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China aims for 5% GDP growth in 2024, but property downturn and murky growth prospects make foreign investors wary.
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Private equity funds have shifted focus from China to SE Asia, Australia and Europe due to economic uncertainty and past crackdowns.
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Some foreign firms still target China's huge market, but boards abroad are cautious about further commitments due to geopolitical tensions.