Foreign companies pull back on China investments amid slowing economy and geopolitical tensions
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Foreign companies have been pulling money out of China due to slowing economy, low interest rates, and geopolitical tensions with US. China recorded first deficit in foreign investment since 1998.
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Companies like Apple and Oerlikon have diversified supply chains away from China due to slower growth, lockdowns, and US-China tensions. Firms still see China as key market but are shifting new investments.
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Higher interest rates in US and Europe versus China's rate cuts attract foreign capital. Companies transferring China profits overseas for better returns.
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Direct US-China meeting seen positively, but uncertainty remains on economic policies and bilateral ties. Caution by firms to continue until more stability.
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While not fully divesting, companies reassessing China investments and expanding in other markets like India and Southeast Asia to hedge risks.