Part 5/10:
The decline in FDI and the retreat of foreign companies from the Chinese market can be attributed to deteriorating macroeconomic conditions and escalating government regulations. As businesses face increasingly hostile and restrictive operating environments, many have opted to repatriate their investments. The Chinese government’s attempts to attract foreign capital through tax incentives and eased regulations have thus far proven ineffective. Investment figures reveal a dramatic drop: FDI in January 2025 fell by 13.4% compared to the previous year, underscoring the difficulties inherent in revitalizing foreign interest.