Big economic blow for Xi Jinping as investors pull out over $15 billion from China
China emerged as the fastest-growing economy and became the second-biggest economy of the world after the US. But, it seems that the success story is coming to an end, at least for the time being. After registering a negative Foreign Direct Investment last year, investors have pulled a record £12bn out of China, reports 'The Telegraph'. It may prove to be a severe economic blow for the Communist Party of China-led government and President Xi Jinping.
$14.8bn FDI withdrawn from China
According to the State Administration of Foreign Exchange, foreign investors withdrew $14.8bn or £11.6bn between April and June this year. This is the second time that investors have pulled out more money than what they have invested in the second biggest economy of the world. It is ironic that more than an amount of $10 billion was invested in the first three months of the current financial year before investors withdrew money.
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China's slowdown may hit OPEC countries
This bizarre economic crisis is bound to hit other countries. Citing concerns over the Chinese economy, the Saudi Arab-led Organisation for Petroleum Exporting Countries (OPEC) has slashed its projection of growth in demand for oil. If less oil is consumed, it may hit many oil-exporting countries including those from the Middle East, that heavily depend on the revenue generated from exporting oil.
Geopolitical Tension may hit China
Talking to 'The Telegraph', Duncan Wrigley, Chief China
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