China’s FDI withdrawal wave could ‘slow’ as outlook improves, analysts say
- Specialists said China’s foreign direct investment (FDI) outflow problem could be ‘stabilised’ as economic prospects improve
- Drops in foreign investment, exports suggest lack of confidence – with larger consequences if not handled swiftly
An exodus of foreign capital from China – a prime concern for policymakers in an era of diminished growth – has entered a “slowed” and “stable” stage as an improved economic outlook has raised hopes some foreign investors may return, government advisers said on Wednesday.
Jiang Xiaojuan, former deputy secretary general of the State Council, said while short-term geopolitical and supply chain changes have caused foreign businesses to leave China, the trend will slow.
“It appears to have stabilised,” she said at an annual conference hosted by financial magazine Caijing.
If these companies are really resistant to working with China, they would not make such decisions
Jiang said while foreign companies that left are not repatriating moved factories and assets, since March some have apparently decided to keep sourcing goods from China, or have returned to previous Chinese suppliers after moving orders out.