Unprecedented financial indicators have been recorded in China, according to analyst Eldar Shamsutdinov. In his Telegram channel, he writes:

«For the first time in its history, China has recorded a quarterly deficit in foreign direct investment (FDI). This indicates capital outflow and suggests that Beijing is facing difficulties in attracting foreign companies amid reduced risks from Western governments.

Commitments to foreign direct investment, a broad indicator of FDI that includes the undistributed profits of foreign companies in China, were in deficit at $11.8 billion from July to September. This marks the first quarterly deficit since the Chinese currency regulator began collecting such data in 1998. The deficit may be linked to the consequences of Western countries withdrawing from China, as well as China’s unfavorable position in terms of interest rates.

As a result, China’s basic balance, which includes the current account balance and the balance of direct investments and is more stable than volatile portfolio investments, recorded a deficit of $3.2 billion. This became the second quarterly deficit in the entire history of observations.»