Commentary
China investment risk is rising due to the ongoing threat of COVID-19 lockdowns, possible sanctions for Beijing’s support of Russia and the Burmese military government, as well as long-term damage done to the Chinese economy by Xi Jinping’s campaigns to crack down on the tech, education, and property sectors.
Investor confidence surveys find that the United States is believed to be the world’s safest destination for foreign direct investment (FDI). China was the fourth largest recipient of FDI in 2020 but has now fallen to 10th place in terms of investor confidence.
Additionally, the Federal Reserve rate hikes have made the United States an increasingly attractive destination for investment. This will most likely increase capital outflows from China, driving down the value of the yuan….