Foreign Investment in China Plunges to 30-Year Low Amid Regulatory Crackdowns and Geopolitical Tensions

Foreign direct investment (FDI) into China collapsed to a 30-year low in 2023 amid restrictive policies and geopolitical tensions
FDI fell over 90% from 2021's peak to just $33 billion, the lowest since 1993
For the first time, China saw a quarterly deficit in FDI of $11.8 billion as outflows exceeded inflows
An increasingly difficult business environment in China with unpredictable regulations is deterring foreign investment
Growing China-West geopolitical frictions make companies cautious about investing given rising costs and risks