Foreign investors withdrew billions from Chinese economy over the last three months

Foreign investors have removed billions from the Chinese economy in recent months, putting the country on course to record its first net outflow in decades, Bloomberg reported.

The State Administration of Foreign Exchange announced last week that that the country's direction investment liabilities had dropped by roughly $15 billion in the second quarter alone.

In the first quarter, foreign investment dropped 56% compared to the same period in the prior year, Nikkei Asia reported in May.

Chinese investors, moreover, are increasingly looking a broad for more favorable returns, expatriating $71 billion in the same three-month period, per the outlet.

The trop comes amid mounting scrutiny over the stability of the Chinese economy, which has suffered considerable setbacks in recent years, in part due to the impact of the COVID-19 pandemic and trade disputes with the United States.

Independent of foreign practice, the Chinese economy is also feeling the effects of declining birthrates and its subsequent impact on the labor force.

"The Chinese economy is entering a critical transition phase, no longer able to rely on an abundant, cost-competitive labor force to drive industrialization and growth," HSBC chief Asia economist Frederic Neumann said last year.

The country marked its first population decline in decades in 2022.