Foreign Investors Flee China
Posted on 05/05/2023
Suspicions about China’s reopening and skepticism about the expected acceleration in economic activity has taken hold. Foreign investors were net sellers of Chinese stocks in April, selling US$ 658 million through a Honk Kong exchange link. Some fear the U.S. will impose new caps on Chinese investment. There has already been significant damage done by the computer chip industry mandate, leaving Chinese lacking some high-grade technologies that are necessary for an advanced economy.
China has been active politically, financially, and even diplomatically. The country is trying to broker peace deals in Ukraine and elsewhere to make room for increased trade. Meanwhile, tensions with the west have grown. On May 4, 2023, Canada called a diplomat to respond to questions concerning potential intimidation within the country. Canada has even threatened to expel Chinese diplomats. The threat is suspected of coming to Michael Chong, who criticized China’s actions at home and in Hong Kong. China’s Consulate General in Toronto called Canada’s worries “rumors.”
