Over the past 20 years, investment has been one of China’s major economic strategies. Chinese overseas investment has grown extremely fast in recent years, reaching US$123.12 billion in 2015. By mid-April of 2016, another $110 billion has gone overseas. For foreign investors, however, China is no longer an attractive destination, and for Chinese, overseas investing is more about finding a safe haven than about seeking high returns.
The real reason behind Chinese capital outflows is to evade or minimize substantial losses in the economic downturn back home.
Foreign Investment Leaving China
Since 2009 the vast majority of foreign investors in China have been downsizing, closing, and divesting. In the manufacturing city of Dongguan alone, 72,000 enterprises have closed down between 2008 and 2012. In 2014, at least 4,000 more businesses closed, and in October 2015, over 2,000 Taiwan-funded enterprises left Dongguan, leaving five million workers without jobs.