China's Foreign Direct Investment Turns Negative, Outflows Exceed Inflows on Concerns Over U.S. Tensions and Anti-Spy Laws

Foreign direct investment in China has turned negative for the first time on record, with outflows exceeding inflows for the first time. This trend is attributed to slowing growth, rising geopolitical tensions, and concerns over U.S. tensions and anti-spy laws. Foreign firms have pulled more than $160 billion in total earnings from China over six successive quarters through the end of September. The outflows reflect collapsing corporate confidence in China's state-led economic model under President Xi Jinping's leadership. This development poses a significant challenge for China's economy and the Chinese yuan.