China's New Laws Stifle Foreign Investment, Resulting in Record Low Inflows

China has recorded its lowest foreign direct investment (FDI) on record, with a 87% decrease in Q2 2023 compared to the previous year. Experts attribute this decline to new laws that have created a lack of transparency and increased government overreach, dissuading trading partners from developing closer ties. The global supply chain crisis and efforts by countries like the US and Germany to diversify and decrease reliance on China have also contributed to the decline. The sluggish post-pandemic recovery and Xi Jinping's policies of centralizing the economy and cutting off the country from the outside are seen as undermining economic growth and potentially leading to long-term decline.