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Foreign investment in China declines as MNC becomes pessimistic about the Chinese economy

Beijing [China]May 22 (ANI): Multinational corporations move into China as investors become more and more pessimistic about the Chinese economy amid President Xi Jinping’s strict COVID policy and Russia’s attitude toward the Ukrainian war. Direct foreign investment is falling off the edge of the cliff.

These MNCs face serious challenges in doing business in China. According to the Financial Times, many political and regulatory problems have been exacerbated by Xi Jinping’s policies, which he is colluding to overturn the dreams of many multinationals.

Under these circumstances, Central European relations have also been hit. Joerg Wuttke, chairman of the EU Chamber of Commerce in Beijing, said unpredictability is urging the European business community to “hold” investment in China.

Citing the attitude survey of 1,800 members of the EU Chamber of Commerce this month, Joerg Wuttke, Chairman of the Beijing Chamber of Commerce, said, “Many of our members are now on the lookout for investment in China. We are taking an approach. ” 3% of members are considering shifting their current or planned investment from record highs in China. 77% report that China’s attractiveness as a future investment destination has diminished. “

Apart from the European community, pessimism about the Chinese economy also involves the US business community. According to the media portal, travel hassles such as flight cancellations, visa complications, and long-term quarantine on arrival will lead to a “significant reduction” in US investment in China.

Meanwhile, according to a survey by the German Chamber of Commerce, nearly 30% of foreign employees had plans to leave China.

This is all the result of China’s Zero-COVID policy, which has caused the suffering of foreign families trapped in apartments for weeks in Shanghai.

This can cause fundamental changes in the functioning of the world economy. China continues to be one of the most popular destinations for Western multinationals looking to offshore manufacturing, but this is subject to change.

Boeing’s largest customer in China announced this month that it will remove more than 100 US manufacturers’ 737 MAX jets from their planned purchases.

Nike, a US sportswear group, and HM, a Swedish fashion retailer, were one of the brands targeted by Chinese consumer boycotts last year after commenting on forced labor in the Xinjiang Uygur Autonomous Region. (ANI)

Foreign investment in China declines as MNC becomes pessimistic about the Chinese economy

Source link Foreign investment in China declines as MNC becomes pessimistic about the Chinese economy

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