Are companies and investors from other countries concerned about the situation in China?
The situation in China may be worrying for two types of reasons: The prospect of persistently weak growth, due to population ageing and obstacles to growth in domestic demand; Political risk (state interventions in competition, use of data, level of earnings; preference for state-owned enterprises; aggressiveness towards neighbouring countries). This development in China should normally reduce: Direct corporate investment in China; Financial investment in China. What can we see? Surprisingly, we see that the level of direct or financial investment from the rest of the world remains high despite the level of risk.