Part 3/9:
The data indicates that the balance of payments in China has also shown a 90% decrease in net FDI from the previous year, reaching its lowest level in 33 years. While the final quarter of 2024 saw a modest net inflow of $17.5 billion after two quarters of outflows, the overall atmosphere remains bleak. Investors have been deterred primarily by China's stringent zero-COVID policies and uncertainties surrounding economic conditions, leading to significant exits from the country by multinational corporations.
Prominent firms such as IBM, Microsoft, and Cisco Systems have scaled back their operations due to data transfer restrictions and stringent government oversight, with others like Nippon Steel pulling out of long-standing joint ventures.