3 Factors Continue to Drive Foreign Investment Out of China: Experts

A man walks past the Central Business District in Beijing on May 31, 2023. Jade Gao/AFP via Getty Images

Foreign investments have continued to flee China as the country’s economy remains sluggish. Experts pointed out three major factors causing it.

Since December 2022, when Beijing abandoned the restrictive “Zero-COVID” policy, foreign investors were optimistic about the Chinese market. Foreign investment poured back into China in the first few months of 2023, although that recovery quickly lost momentum.

Geopolitical Tensions

Relations between China and democratic nations have been deteriorating because of the Chinese communist regime’s aggression in the international community, especially in the Taiwan Strait and the South China Sea.