The drop marks the most significant one on record since 1998 when comparable data starts, with some experts arguing China's new laws that decrease transparency are driving away investors.
The Chinese economy recorded the first period of negative foreign direct investment in decades, marking another significant and worrying indicator of Beijing’s sluggish post-pandemic recovery. "Conducting business in China is getting increasingly difficult," Josh Birenbaum, deputy director for the Center on Economic and Financial Power at the Foundation for Defense of Democracies, told FOX Business.
"Particularly, you’re looking at the national security and the NTSB laws that raised the prospect of fines, harassment, jail time for conducting basic risk assessment and due diligence that everybody multinational needs to do in order to operate," Birenbaum explained.
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