China suffered a record withdrawal of foreign investment funds for the April to June period, losing almost $15 billion, data from the State Administration of Foreign Exchange indicated. This is a stark contrast from the $5 billion in withdrawals over the entire first six months of the year as well as the lowest level of foreign investment since the start of the pandemic in 2020.
Having hit a record $344 billion in 2021, Chinese foreign investment has been on a steady decline ever since. While China has been engaged in broad initiatives to retain foreign investment, the country recorded its narrowest growth in foreign funding last year. According to the data, outbound Chinese investment in foreign markets hit a record level of $71 billion in the second quarter; an 80% surge from the same period the previous year. This rise is largely a result of Chinese firms looking to step up their global presence, particularly in the emerging electric vehicle market and lithium battery factories.
In terms of China’s overall trade, the nation appears to be in solid health. China’s trade surplus hit a record $87 billion for the second quarter, taking it past the $150 billion mark for the first half of the year.