Foreign investment in China declines as multinational corporations become pessimistic about the Chinese economy

Peking []May 22 (): Direct foreign investment in China from multinational corporations falls off a cliff as investors become increasingly pessimistic about the Chinese economy amid President Xi Jinping’s strict covid policy and his stance on ’s war on .

These multinational face serious challenges in conducting their business in China. A number of political and regulatory issues are exacerbated by Xi Jinping’s policies that conspire to eradicate the dreams of many multinational corporations, the reported.

The China- ties are also getting a thorn in the side of this rising situation. Joerg Wuttke, chairman of the EU Chamber of Commerce in , says that the unpredictability is causing European business to put investment in China “on ice”.

Referring to an attitude survey this month of the EU’s 1,800 members of the Chamber of Commerce, Joerg Wuttke, chairman of the Beijing Chamber of Deputies, said: “Many of our members are now taking a wait-and-see attitude towards investing in China.” three percent of our members are now considering moving current or planned investments from China, the highest level ever. And 77 percent report that China’s attractiveness as a future investment destination has diminished, “he added.

In addition to the societies in Europe, the pessimism towards the Chinese economy has also engulfed the American business community. Travel problems, including canceled flights, visa complications and long quarantines on arrival – will lead to a “massive decline” in US investment in China, according to the media portal.

At the same time, a survey by the German Chamber of Commerce showed that almost 30 percent of foreign employees had plans to leave China.

All this is a consequence of the Chinese zero-COVID policy which has resulted in the of expatriate families who are locked in their apartments for weeks in .

This could cause a fundamental change in the way the global economy works. China has remained one of the hottest destinations for Western multinationals wanting offshore manufacturing, but this is likely to change.

Boeing’s largest customer in China announced that more than 100 of the US manufacturer’s 737 MAX jets had been removed from its planned purchases this month.

The American sportswear group Nike and the Swedish fashion retailer HM were among the brands that targeted Chinese consumer boycotts last year after they commented on forced labor in Xinjiang. (ANI)

Source: sn.dk

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