Contrary to recent narratives pushed by some Western media outlets, foreign investment in the Chinese mainland is not only stable but also growing robustly. Claims that foreign investors are withdrawing funds from China's A-shares and accelerating a decoupling trend have been echoed repeatedly over the years, but experts argue these assertions lack substantive evidence.
Liu Yangsheng, founder of Impact Asia Innovation Capital and senior fellow at the Taihe Institute, dismisses these rumors as unfounded and politically motivated. He points out that Western hyperboles about \"foreign capital leaving China\" have been consistently disproven over the past two decades.
In reality, European foreign direct investment (FDI) in China is on the rise. Germany, for instance, saw its FDI in China nearly reach a record level in the first half of this year. This upward trend is further supported by significant investments from Middle Eastern countries, including the United Arab Emirates, Kuwait, Saudi Arabia, and Qatar.
Investors from the Middle East are particularly drawn to China due to the region's limited capacity for large-scale industrial investments and the attractive returns offered by the Chinese market. With a population exceeding 1.4 billion and rising consumer spending, China presents compelling opportunities compared to the uncertainties and inflationary pressures prevalent in the U.S. market.
Recent visits by Saudi ministers to China underscore the growing confidence and positive outlook towards investing in the Chinese mainland. These developments highlight a resilient and appealing investment environment that continues to attract global capital despite contrary claims in some Western circles.
Reference(s):
cgtn.com
