Foreign companies pull more money from China's shaky economy
China last quarter, a sign that some investors are still pessimistic even as Beijing rolls out stimulus measures aimed at stabilizing growth.
China's direct investment liabilities in its balance of payments dropped $8.1 billion in the third quarter, according to data from the State Administration of Foreign Exchange released late Friday. The gauge, which measures foreign direct investment in China, was down almost $13 billion for the first nine months of the year.
Foreign investment into China has slumped in the past three years after hitting a record in 2021, a casualty of geopolitical tensions, pessimism about the world's second-largest economy and stronger competition from Chinese domestic firms in industries such as cars. Should the decline continue for the rest of the year, it would be the first annual net outflow in FDI since at least 1990, when comparable data begins.
Companies that have pulled back some China operations this year include automakers Nissan Motor Co. and Volkswagen AG, along with others like Konica Minolta Inc. Nippon Steel Corp. said in July it was exiting a joint venture in China, while International Business Machines Corp. is shutting down a hardware research team in the country, a decison affecting about 1,000 employees.
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