Foreign investment in China falls to the lowest level in 30 years

In 2023, China's net FDI totalled a mere $33 billion, a staggering 80 per cent drop from the previous year. This marks the second consecutive year of decline, a significant fall from the peak of $344 billion recorded in 2021.

Despite the dismal overall figures, the final quarter of 2023 saw a slight improvement, with inflows surpassing outflows by $17.5 billion. This modest recovery followed the first-ever recorded net outflow in the previous quarter. However, the overall trend reflects a growing reluctance among foreign investors to commit to China, as geopolitical tensions and regulatory crackdowns cast a shadow over the investment landscape.