Caixin
Dec 08, 2023 08:35 PM
ECONOMY

In Depth: China’s Responses to Crumbling Foreign Investment May Take Time to Stoke Rebound

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pictureNet FDI into the Chinese mainland in the third quarter recorded its first negative reading since the key economic measure began being compiled 25 years ago.
pictureNet FDI into the Chinese mainland in the third quarter recorded its first negative reading since the key economic measure began being compiled 25 years ago.

While some foreign investors have been pulling money out of China as confidence has been battered, recent government efforts could be setting the stage for a rebound, but it may take time, analysts told Caixin.

“Many investors we talked to during a September visit to Wall Street said they weren’t expecting China to backpedal from opening up its financial sector,” a Chinese economist said. “But they still leaned toward caution (when it came to investing in China) because of current geopolitical risks and (its) subpar economic recovery.”

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