In China, foreign investors withdrew a record amount of In China, foreign investors withdrew a record amount of money during the second quarter of the year, Bloomberg reports, according to data from the State Administration of Foreign Exchange (SAFE).

China's direct investment liabilities -an indicator of foreign capital inflows to the country- fell by almost US$15 billion in the April-June period, the second time this indicator has been in negative territory since it has been measured. fell by almost US$15 billion in the April-June period, the second time this indicator has been in negative territory since it has been measured. This phenomenon is due to the growing perception of weakness in the Asian economy. If the trend continues, 2024 would be the first year in which a net outflow is recorded since 1990, the year in which records began, according to Bloomberg.

Foreign direct investment in China reached a net positive flow of US$344 billion in 2021, the highest on record; however, However, since then the trend has been clearly downward. Added to the slowdown in that economy are geopolitical tensions, which have led many companies to reduce their exposure in the country. This is despite the government's efforts to attract and retain foreign investment.

There is also the fact that it is in the interest of foreign companies to keep their cash outside China. foreign companies are better off keeping their cash outside China, where they get better interest rates at a time when the authorities have been cutting them to stimulate the economy, where they get better interest rates at a time when the authorities have been cutting them to stimulate the economy.

At the same time, the Asian giant's investments abroad have increased considerably, reaching a record US$71 billion in the second quarter, 80% more than in the same period last year. Chinese companies are investing in manufacturing plants in other countries - most notably factories for electric vehicles, batteries and other complements to the automotive supply chain, partly as a result of the nearshoring phenomenon. nearshoring in global supply chains.