China's Economic Woes Deepen with First Foreign Investment Deficit

China has recorded its first quarterly foreign investment deficit, indicating a decline in foreign direct investment as tensions with the US rise and Beijing's crackdown on the tech sector spooks international investors. The deficit reflects western countries and companies shunning China, with President Joe Biden's executive order limiting American investment in Chinese semiconductor and AI companies contributing to the decline. Ongoing crackdowns against non-Chinese businesses, capital controls, faltering economic growth, and a crisis in the property market further compound China's economic challenges.