# Foreign direct investment is exiting China, new data show | PIIE

> New Chinese data show foreign firms are net sellers of their direct investments in China and repatriating funds, with outflows exceeding $100 billion in the first three quarters of 2023. The article links the trend to rising US-China tensions and tighter Chinese regulation.

- Date: 2023-11-17 · published 2023-11-17T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12026-foreign-direct-investment-is-exiting-china-new-data-show-piie
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Capital outflows add downward pressure on the yuan, which can keep USDCNY higher and modestly weigh on China's growth outlook and its demand for imported commodities.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-07-27 | [China Stock Rout Spreads Amid Fears of Foreign Investor Exodus - Bloomberg](https://feedsoft.ai/events/46290-china-stock-rout-spreads-amid-fears-of-foreign-investor-exodus-bloomberg.md) | -0.3% | -0.0% |
| USDCNY | 2018-09-28 | [Fed rate hike has effect on forex trading in China - CGTN](https://feedsoft.ai/events/63268-fed-rate-hike-has-effect-on-forex-trading-in-china-cgtn.md) | -0.3% | +0.8% |
| USDCNY | 2025-01-14 | [Inverted swaps curve shows investors pare China rate cut bets](https://feedsoft.ai/events/12211-inverted-swaps-curve-shows-investors-pare-china-rate-cut-bets.md) | -0.8% | -0.3% |
| USDCNY | 2024-11-28 | [Chinese yuan to hit record lows as U.S. tariff threat mounts, investment banks forecast](https://feedsoft.ai/events/27630-chinese-yuan-to-hit-record-lows-as-u-s-tariff-threat-mounts-investment-banks.md) | +0.1% | +0.7% |
| USDCNY | 2019-06-11 | [Why ‘cracking seven’ is a big deal for China’s currency](https://feedsoft.ai/events/58820-why-cracking-seven-is-a-big-deal-for-china-s-currency.md) | -0.1% | -0.6% |

## Sources

- piie.com: https://www.piie.com/blogs/realtime-economics/2023/foreign-direct-investment-exiting-china-new-data-show

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.