China has record foreign investment outflow as US$168 billion exit

China saw record outflows of foreign direct investment last year, an exodus that threatens to persist after the resumption of a trade war with the US.

Net FDI dropped by US$168 billion (HK$1.31 trillion) in 2024, according to the State Administration of Foreign Exchange, the biggest capital flight in data going back to 1990. Foreign investment into China has slumped in recent years after hitting a historical high of US$344 billion in 2021.

International companies have been pulling back just as domestic firms also rapidly moved money abroad. Chinese investors sent US$173 billion overseas, while foreign investors only channeled US$4.5 billion into the country, the lowest amount since 1992.

Staunching the outflow of capital will be a challenge after China and the US started another round of the trade war that could embroil more companies.