Foreign investment in China turns negative for first time

  • Outflows of foreign direct investment in China have exceeded inflows for the first time.
  • The shift was reflected in balance-of-payments data for the July-September quarter released Friday by the State Administration of Foreign Exchange.
  • FDI came to minus $11.8 billion, with more withdrawals and downsizing than new investments for factory construction and other purposes. This marked the first negative figure in data going back to 1998.
  • In a survey taken last fall by the American Chamber of Commerce in the People’s Republic of China, 66% of member respondents cited rising bilateral tensions as a business challenge in China.

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