The economy’s waning recovery has also damped confidence among overseas investors. According to figures released by the State Administration of Foreign Exchange (SAFE) on Friday, foreign direct investment (FDI) fell to a 25-year low in China in the three months through June. Direct investment liabilities, a measure of FDI in China, dropped to $4.9 billion — a 76% plunge from a month earlier and down 87% from the same period last year — the lowest quarterly level recorded since 1998.
New foreign investments in China have come to a screeching halt. Next, existing investments there will find their way out. Decoupling is not a slogan. It shows up in every aspect in China’s interactions with the West. Good progress so far.
