Global investors flee China fearing that risks eclipse rewards

A growing list of risks is turning China into a potential quagmire for global investors, and outflows accelerated after Russia’s invasion of Ukraine, while Norway’s USD 1.3trn sovereign wealth fund has snubbed a Chinese sportswear giant due to concerns about human-rights abuses.
China’s President Xi Jinping’s friendship with Russian leader Vladimir Putin has made investors more distrustful of China, while a strongman narrative is gaining momentum as the Communist Party doggedly pursues a Covid-Zero strategy and unpredictable campaigns to regulate entire industries. | Photo: SPUTNIK/VIA REUTERS / X02440
China’s President Xi Jinping’s friendship with Russian leader Vladimir Putin has made investors more distrustful of China, while a strongman narrative is gaining momentum as the Communist Party doggedly pursues a Covid-Zero strategy and unpredictable campaigns to regulate entire industries. | Photo: SPUTNIK/VIA REUTERS / X02440
By Sofia Horta e Costa and Tania Chen / BLOOMBERG

A growing list of risks is turning China into a potential quagmire for global investors. The central question is what could happen in a country willing to go to great lengths to achieve its leader’s goals.

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