China records first quarterly foreign direct investment deficit
Execs worry about China slowdown, geopolitics, regulations
Trend could weigh on yuan, chip away at growth potentialanalyst
Chinafocused buyout fundraising has ground to a haltdata
BEIJINGHONG KONG, Nov 28 Reuters U.S. furniture company head Jordan England thinks his firm39;s Chinese suppliers are among the best in the game, but geopolitics and a slowing economy have pushed him to source more products from Southeast Asia, Eastern Europe and Mexico.
I39;m looking to move away from it China, said England, CEO and cofounder of Floridabased Industry West.
It was always 39;China plus one,39; he said, referring to the diversification strategy many businesses began implementing after Washington imposed trade tariffs on Beijing in 2018 to ensure they were not wholly dependent on Chinese suppliers.
Now it39;s like 39;plus1039; and then China, he added, with the latter down to providing half of Industry West39;s products and being trimmed more.
Foreign investors have been sour on China for most of this year, but data released over the past month has provided clear evidence of the negative impact derisking strategies are having on the world39;s secondlargest economy.
Activity surveys showed manufacturing unexpectedly contracted in October, while exports accelerated their decline. China recorded its firstever quarterly deficit in foreign direct investment in JulySeptember, suggesting capital outflow pressure….