$14.8 billion of FDI withdrawn from China
According to the State Administration of Foreign Exchange, between April and June this year, foreign investors withdrew $14.8 billion or £11.6 billion. It is the second time that investors have withdrawn more money than they have invested in the world’s second-largest economy. It is ironic that in the first three months of the current financial year, more than $10 billion was invested before investors withdrew their money.
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China’s slowdown could affect OPEC countries
This strange economic crisis will surely affect other countries. Citing concerns about the Chinese economyThe Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, has cut its projection for oil demand growth. If less oil is consumed, this could affect many oil-exporting countries, including those in the Middle East, which rely heavily on revenue generated by oil exports.
Geopolitical tensions could affect China
Speaking to The Telegraph, Duncan Wrigley, chief China economist at Pantheon Macroeconomics, said what was happening was that foreign investors were selling assets and either exiting China or taking profits out of it. He said companies that have export factories were concerned about geopolitical tensions with the US.Read also: Trump breaks Twitter hiatus, releases new Hollywood-style campaign video It is also a fact that Western companies exporting to the United States have been moving their production to more friendly countries such as Vietnam and Mexico to reduce risks in their supply chains.
Frequently Asked Questions:
How much? FDI Has it been removed from China recently?
According to the State Administration of Foreign Exchange, foreign investors withdrew $14.8 billion or £11.6 billion between April and June this year.
How will China’s slowdown affect OPEC countries?
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, has cut its projection for oil demand growth. If less oil is consumed, this could affect many oil-exporting countries, including those in the Middle East, which rely heavily on revenue generated by oil exports.
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