Despite the difficulties involved, some US and European firms are shifting investment from China to other developing markets, such as India and Vietnam. Those who dismiss the importance of this often invoke the “ West is in decline, East is on the rise” mantra to suggest China doesn’t care about dwindling capital inflows.However, this ignores the fact that FDI is often viewed as a bellwether for economic health and credibility. Domestic entrepreneurs and private investors also turn to FDI volumes in deciding capital allocation and business plans. It is not too late for Beijing to embrace pragmatic measures aimed at arresting the free fall in confidence and repairing China’s attractiveness for international investors.
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‘Door to China-US relations will not be closed again’: Xi Jinping offers assurances to US businesses
‘Door to China-US relations will not be closed…
