Peak China
“China Foreign Investment Gauge Turns Negative For First Time”
“A measure of foreign investment into China turned negative for the first time since records began in 1998, highlighting how foreign companies are pulling money out of the country due to geopolitical tensions and higher interest rates elsewhere.
China’s direct investment liabilities in its balance of payments declined by $11.8 billion in the third quarter, the country’s foreign exchange administration said. The measure records monetary flows connected to foreign-owned entities in China.
Economists have said the decline in FDI by the balance of payments measure reflects less willingness by foreign companies to re-invest profits made in China in the country. That’s due to strained ties with the West and the rising attractiveness of keeping cash overseas. Advanced economies have been raising interest rates while China has been cutting them to stimulate the economy.”
“It’s U.S. vs. China in an Increasingly Divided World Economy”
“Trade and investment flows settle into new patterns around two rival power centers—with major risks”
“China passed a significant milestone last fall: For the first time since its economic opening more than four decades ago, it traded more with developing countries than the U.S., Europe and Japan combined. It was one of the clearest signs yet that China and the West are going in different directions as tensions increase over trade, technology, security and other thorny issues. “