China Loses Foreign Investment By $15 Billion

China is facing a loss of $15 Billion in foreign investments. Several big companies like Honda and Hyundai are cutting back. This happened for the second time in the world’s second-largest economy. The country’s city centre, Beijing is trying its best to maintain the interest of foreign investors. However, the number is the lowest in 30 years. The economy was already facing challenges post-coronavirus. However, the situation does not seem to be all right. Let us have a look at the current situation of China’s economy.

How China Is Lossing Foreign Investment Worth Billions?

A lot of big companies are stepping back from investing in China. There can be several reasons behind it. The country is seeing an annual outflow for the first time after 1990. China’s economy has been slowing down since the pandemic. Even after a lot of effort, there are not many improvements. China is currently making efforts to maintain foreign investors with attractive approaches. Even the Chinese government wants more foreign investors. This is because foreign investments in China will also bring advanced technology to the country.

It will help in resisting the pressure from the US. Apart from the decreased foreign investments, a lot of companies are also refusing to import Chinese EVs and their accessories. Some countries are raising the import duty to decrease demand and dependability in the country. Especially United States don’t want to depend completely or majorly on China for the supply of EVs or their accessories.

Even Canada is moving on the same path. China is facing outflow for the first time since 1990. The Chinese outbound investment hits $71 Billion in the second quarter. The Chinese economy is facing a lot of challenges at the moment. In this phase, the exports or any demand for the export of EVs or other products can save the Chinese economy. China’s economy is moving forward with a lot of uncertainties. Foreign investors are unlikely to come back for the investments in the coming quarters.

However, there can be a little hope that things change a little in the coming years. Foreign Investors are shifting to other countries as they are getting more profit margins there. In conclusion, Foreign investors are cutting back from the country. They are looking for other investment options. Recently the US also showed disinterest in importing from China. While Canada followed the same. Also, India boycotted several Chinese products after they started impacting the Indian retailer’s sales and market with their low price.